Transportation management is a comprehensive discipline concerned with realizing the transportation requirements of an organization. This requires the systematic analysis of an organization’s transportation processes and systems and the identification of the key relationships among these processes and systems.
Transportation management system or TMS is a powerful software application that integrates multiple real-time systems and algorithms that align a business supply chain, logistics process flow, warehouse process modeling, linehaul express shipping, freight capacity planning, and off-loading.
With this software, the speed and efficiency of an organization’s transportation and warehousing activities can be improved through the collective efforts of the transportation and warehousing staff. In fact, real-time transportation and warehousing data can significantly improve the operational productivity of an organization.
A well-designed transportation management system can achieve this by reducing logistical errors, schedule delays, excessive over-crowding in the warehouses and delivery locations, and other factors that hinder the smooth flow of goods and materials. TMS can help in the:
Real-time inventory management – A major advantage of a truck and delivery tracking applications and TMS is that they provide real-time inventory reports of loads carried by vehicles in the system. These reports are used by trucking personnel to assess their routes, forecast their loads based on past performance, and plan for additional routes or route changes that help in optimizing fleet performance. In addition to this, the tracking of loads and other parameters provided by the software, such as route, time value of money, and fuel consumption of the vehicle, can also be useful for controlling costs. An example of the common usage of truck tracking reports is for companies involved in transporting hazardous waste. TMS can also track hazardous material shipments by alerting companies when specific routes or shipments are being used by the shipper, for example, for hazardous drugs.
Real-time information about the land and sea-borne freight – In today’s fast-changing and interconnected world, a company need not wait for shipment or cargo arrival time to evaluate the cargo status. Real-time information about the land and sea-borne freight in the system allows organizations to evaluate their inventories more efficiently. The information includes estimated unloaded weight, destination, and date of shipment, among others. Trucking companies can access and evaluate all this information through real-time tracking systems using GPS-enabled handheld devices.
Visibility and availability of resources – It is no longer enough to rely on paper records to monitor inventory, supply chain, and shipment status. Trucking and Logistics companies need to have access to real-time visibility and availability of personnel, trucks, resources, and vehicles. This is essential, especially during emergencies when supplies and services may be badly needed. TMS can also help minimize the impact of emergencies and other unexpected events on logistics operations and business. Trucking and Logistics companies need to have TMS applications that provide real-time visibility of resources. In addition, the system should allow for flexible scheduling of deliveries, route mapping, reroute management, and other activities.
Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.
In this age of technology, finding potential foreign buyers for your products is now more convenient. As simple as setting up a business website can expand your target market on an international scale.
If you have an online store, you can easily list your products for sale and attract buyers from all over the world. Most of the time, when a buyer searches for products on the internet, they are looking for the best deal. They want to save money and find a good quality product. With the current economic situation in the US, finding potential buyers of your products has never been easier.
Why is Online Commerce Booming Nowadays?
One of the main reasons that so many people are turning to the internet to sell their products is because it is cost-effective. The shipping costs are one of the biggest expenses for shipping products from one country to another. Even if you do not ship your items yourself, the shipping costs associated with shipping your items can eat into the profits you are trying to make.
Freight Forwarders Can Save Your Day
When you list your products on an online store, they will be shipped by freight forwarders. Freight forwarders are companies that will specialize in shipping merchandise from one country to another. They have storage space, and they have specialized shipping trucks that will be able to transport your items from place to place. The great thing about these types of companies is that they have access to various global ports. This means that your products will be shipped all around the world.
Finding the Best Freight Company
If you are only going to ship your items to Asian countries, you will need to make sure that you keep a few things in mind. You need to make sure that the freight company that you use has low shipping rates. You also need to make sure that the shipping rates do not hurt your bottom line. If you are only shipping to Asia once a year, and that is all you do, then you will not need to worry about the shipping costs as much as if you were frequently shipping.
If you are selling to non-Asians regularly, you will be able to take advantage of eBay’s marketplace. eBay has an interface for international sales. All you will need to do is register an account, login, and take a look at the listings. There, you will see the various countries around the world that someone might be interested in buying from you. You can also locate sellers near you that may be interested in selling to your customers. You will just need to advertise your products on eBay and wait for potential buyers to contact you.
So, there you have it. Now that you know the best ways for finding potential foreign buyers for your products, all that remains is for you to start your search. You should also remember to add your country of origin to your site’s address line, so you can be found by people who are searching for your products. Good luck!
Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.
Due to the worldwide spread of COVID-19, many surviving enterprises started to introduce new methods and techniques when it comes to keeping their operations intact. This is pretty much evident, especially in the aspect of supply chain management.
Sudden disruptions in the supply chain can occasionally strike during natural disasters and other public health emergencies. However, in extreme cases such as the pandemic, the severe effects of supply chain disruptions are more noticeable since it usually takes a lot of time to develop a vaccine and eradicate the virus. Even if a company is fortunate enough to resume its operations, there’s a high chance that its suppliers and other business partners won’t be able to keep, making it difficult to make any successful deals.
Do you want to protect your business against supply chain disruptions? Here are some of the best ways of minimizing its negative impact:
Communicate with Your Suppliers
Your suppliers are essential in maintaining the stability of your supply chain. The challenge that you have to face with your suppliers is that they are separate entities with different contingency plans that they implement in response to the pandemic. You should have an idea of how your suppliers operate and maintain their products so that you can make the necessary adjustments and keep them coordinated to your needs.
Go for Bulk Containers
When delivering products to your clients, you can reduce the risk of virus infection by limiting the number of product touches and points of contact during the shipping process. Letting your products exposed to possible cross-contamination can hurt the reputation and reliability of your company, so simplifying your shipping processes is like a precautionary measure against the ongoing pandemic. For instance, you can have a forklift carry used bulk containers when transporting goods to prevent your workers from touching a number of smaller containers.
Prepare Supply Chain Protocols
Aside from being a global health concern, pandemics can also hinder international trade, affecting millions of businesses worldwide. The facility of your business must be able to implement emergency supply chain protocols at any moment. These protocols may include crucial decisions that are planned carefully in order to immediately develop contingency plans and adjustments that can help your business survive.
Keep Your Workers Safe
The success of a company may depend on its ability to take care of its workers in times of crisis. COVID-19 is a virus capable of infecting a large group of people in public places. If you allow your workers to work during the pandemic, you have to equip them with the necessary gear so that they can work while preventing any risks of infection. You can have them wear face masks, face shields, and other protective clothing if needed. Regular sanitation of your company’s workplace is also a must, as well as promoting the practice of proper hygiene.
Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.
A freight forwarding company is a firm that offers the arrangement of shipping goods in place of an individual client or company. Many businesses today prefer hiring the service of freight forwarders in order to sustain their competence in the world market.
While there can be a wide variety of companies to choose from, finding the most reliable and trustworthy freight forwarder can become quite tricky since there are indeed some risks involved concerning the safety and timely arrival of your products from one place to another.
So, without further ado, here are the telltale qualities that can easily help you determine a reliable and trustworthy freight forwarding company:
Possesses good credentials
One of the most easily identifiable signs of a competitive freight forwarding company is a list of credentials. These can be awards, testimonials from former and existing clients, and specific accreditations from the government. Knowing this can almost guarantee that a freight forwarder is capable of providing the best quality of services available.
Strong and wide network of contacts
A strong and wide network of contacts is an essential tool of a reliable freight forwarder, especially when conducting international shipments. The company must utilize their contacts with carriers to move the goods. They should also maintain friendly relations with several custom brokers as well as other forwarding agents in foreign countries. This will help them establish effective communication when they are trying to request for any updates about the status of the package, which can prevent possible delays on the arrival of goods.
A range of quality services
A trustworthy freight forwarding company usually doesn’t only provide one kind of service. Instead, aside from product shipping, they also specialize in an extensive range of services such as trucking, assistance in the requirements of importing and exporting, breakbulk agency, among others. Having a range of services is a testament to a company’s ability in singlehandedly managing a set of complicated but important business requirements.
Excellent knowledge in document processes
Being an expert in the nuts and bolts of running the documentation procedures of shipping is a perk of a trustworthy freight forwarding company. This enables them to do their job efficiently by properly guiding and assisting the clients in the step-by-step process that can prevent them from spending too much money as well as precious time due to utter confusion.
Customer Service
Most experienced clients prefer a freight forwarding company that grants them information regarding their best rates and options. Moreover, having an active website, email, or contact number that regularly interacts with the customers looking for inquiries makes that kind of company a highly sought-after one.
A decent packaging service
Another trait of a trustworthy freight forwarding company is its skill in sustaining the safety of the products through a proper and foolproof packaging service. Packaging serves as the main protection of goods during the shipping time, so it is most vital for the company to have the proper kind of packaging regardless of what kind of goods they’re transporting.
Excelsior Worldwide Freight Logistics conduct free orientation for those who are willing to learn more about importation and exportation. It is our advocacy to share our knowledge & experience for 17 years in the business. Visit our website today at www.excelsior.ph to learn more about our service.
One of the most critical success factors of an import business is learning how to minimize shipping costs. Whether you’re just new in the international trading industry or have already established a big company, managing shipping cost is an aspect that warrants extreme scrutiny and judgement as it can impact your business’ bottom line really hard.
With that being said, here are some tips that can help you ship from China to the Philippines in a cost-effective way:
1. Choose a Reputable Chinese Supplier
Thefirst step to ensure you get a competitive cost-saving when importing from China is to choose a supplier that is reliable and trustworthy enough to cater to your needs.
If your supplier doesn’t comply with regulations and doesn’t have any certifications, it can lead you to serious legal problems once your cargoes arrive at the port destination, which can ultimately result in delays, additional logistical headaches and shipping costs.
2. Hire a Freight Forwarder in the Philippines
Most freight forwarders in the Philippines are affiliated with numerous international transport organizations and companies worldwide, including local Chinese logistic companies. Hence, you should choose a freight forwarder that can and will use its connections to negotiate for better prices on your behalf.
Furthermore, your chosen Philippine freight forwarder should also be knowledgeable about the freight peak seasons in China (e.g., Chinese New Year) because during peak seasons, importing can become complicated due to high demand, high prices, and a probability of container shortage.
3. Choose Incoterms Wisely
Incoterms are international commercial terms that serve as the basis of agreement between the supplier and the buyer that trades internationally. There numerous Incoterms to choose from, so selecting the most competitive one can be quite challenging.
In general, Incoterms often used to import from China, such as EXW, FOB, and CIF, are the most ideal as they put you in charge of choosing a freight forwarder, shipping routes and times, and other details that allow you to balance all costs so you can stay competitive. However, keep in mind that your negotiation skills and the type and value of goods could also affect the type of Incoterms you should choose.
These are the steps to follow in order to achieve significant cost saving when you import goods from China to the Philippines.
Here at Excelsior Worldwide Freight Logistics, we have equipped people who are knowledgeable regarding import procedures and are committed to reducing your expenditures as much as you are.
We also conduct free orientation for those who are willing to learn about importation & exportation. It is our advocacy to share our knowledge & experience for 17 years in the business.
Contact us today at (063) 525-9775 or email us at wecare@excelsior.ph
There is a famous proverb that says, ‘There is nothing certain, but the uncertain.’ Yes, this statement is true and evident in our daily lives but in doing business and transactions, it’s better to dip your toes first into the water before taking the plunge ̶ you need to know what to expect before closing a deal and that is what a freight rate quote can provide you.
Through these steps, you will be able to have an accurate information on your total shipping expenses and obtain the best freight rate:
Decide where to get a freight quote
Deciding where to get a freight quote can be quite tricky because of the number of options available. To make it easier for you, here are some details on shipping partners that you can choose from:
• Freight Forwarders
If you’re looking for a “one stop shop” that can provide you brokerage, carrier, and international freight forwarding services, then freight forwarders are your best pick.
Be specific with your shipment details
In order for your freight forwarder provide you with an accurate freight quote, you must provide them with the following details:
What are you shipping?
What is the value of your shipment?
What is the size and weight of your shipment?
Where is your shipment going?
When does it need to arrive?
Prepare an RFQ (Request For Quotation)
Once you’ve prepared all the details above, the next step to provide them to your chosen shipping provider. Depending on the services they provide, you may receive just one quote or several to choose from. After you pick a price and service, review all the details to make sure it’s accurate and in order.
Here at Excelsior Worldwide Freight Logistics, we treat our clients as partners. We also conduct free orientation for those who are willing to learn about importation and exportation. It is our advocacy to share our knowledge and experience for 17 years in the business.
Contact us today (063) 525-9775 or visit our website www.excelsior.ph
Choosing a freight forwarder is a crucial decision for every business because you need someone whom you can rely on and entrust the safety of your goods.
It is no secret that there are freight forwarding companies who get banned, imprisoned and fined for illegal operations.
There are also some who just aren’t knowledgeable with the ins and outs of the industry, leading to mistakes and inefficiency.
Having that said, here are seven things that you should look for in a freight forwarder in the Philippines to make sure that your transaction goes smooth:
Expertise
When a freight forwarder has been in business for more than a decade, it’s a good indication that they have sufficient knowledge on transport rules and regulations and have already encountered and overcome lots of challenges in the past, given the fact that they outlasted other freight forwarding companies in the competitive industry.
That is why choosing an accomplished freight forwarder over a newbie will give you more assurance that your transaction will be a satisfying one.
A good business reputation
In connection to expertise in the industry, a good business reputation also comes along with it. They wouldn’t last long in the industry if their services aren’t satisfying, and if they aren’t professional when it comes to dealing with customers because negative customer feedbacks are a deal-breaker.
The good thing is aside from word-of-mouth, you can now check their customer reviews online to know whether their customers are satisfied with their service or not.
A vast network
Another benefit of choosing a freight forwarder who has been in the industry for a long period of time is that they’ve already built connections with multiple logistics companies worldwide, and they can use it negotiate for better prices on your behalf, wherever you’re importing from around the globe.
Accreditation
Aside from long industry experience, you can also evaluate whether a freight forwarder can be trusted or not through checking if they are accredited or not.
Before any transaction, look for a certificate of accreditation from the Department of Trade and Industry first or check the recent list of accredited Non-Vessel Operating Common Carriers (NVOCCs), International Freight Forwarders (IFFs) and Domestic Freight Forwarders (DFFs) at the official website of DTI.
A customs broker’s license
If the freight forwarder also offers customs brokerage services, you should look for a custom’s broker license to ensure that they are really knowledgeable on preparing necessary documents, country-specific rules and regulations, and calculation of duties and related taxes. Otherwise, you might end up wasting money and your shipments held at customs.
Excellent customer care
Good customer service should always be a priority when looking for partners in business, especially when you will entrust them to deliver your goods on time and in good condition.
A freight forwarder with excellent customer care manifests effective communication skills and good business etiquette.
Try to inquire first to determine whether or not they are polite, willing to answer your questions, and attentive to details. If they aren’t, better look for another one that you can get along with, understands your needs and is truly concerned with your business.
Otherwise, your transaction might fail due to miscommunication and misunderstanding. In worse cases, it might even result in lawsuits.
Here at Excelsior Worldwide Freight Logistics, we treat our clients as partners. We also conduct free orientation for those who are willing to learn about importation and exportation. It is our advocacy to share our knowledge and experience for 17 years in the business.
Contact us today (063) 525-9775 or visit our website www.excelsior.ph
Your company is getting bigger, and so are your market and the number of shipments to be made. The problem is, you don’t have your own shipping function. Why not get it outsourced through a freight forwarding partner so that you can focus on expanding your core business further?
To help you fulfill the required documents
Document processing is one of the most crucial and complex stages in every business transaction. Especially in importing and exporting products, wherein there are many different documents, clearances, and permits to be processed. Through partnering with a freight forwarder, the fulfillment of your commercial, transport, financial, and government documents will be hassle-free because you will be assisted throughout the process.
To reduce expenditures
Freight forwarders ship loads of products on a regular basis, that is why they can use their affiliation with multiple transportation companies across the globe to negotiate for better prices on your behalf. Your freight forwarding partner can also cut back your costs through consolidating several small shipments with products from several clients into one large shipment.
To avoid product damage and delay
The main goal of every product-driven business is to have its goods delivered to the right location, intact and on-time. Teaming up with a freight forwarder will help you achieve it through cargo insurance document management services, route optimization, and transport tracking.
Products in transit are inevitably exposed to risks and dangers that is why cargo insurances are highly essential. In case of accidents, theft, and other unfortunate events during the transportation, damaged insured goods can be converted to cash claims.
While route optimization will make the delivery of your time-sensitive products faster by using the shortest and most convenient path. Most freight forwarding companies now use modern technology to find the best routes in order to avoid late deliveries.
Transport tracking, on the other hand, works through using tracking numbers as identification in determining the current location of a shipment.
Indeed, hiring a freight forwarding partner helps in optimizing a supply chain. But in choosing one, aside from the above-mentioned services and benefits, you must also ensure that the freight forwarder is dependable, trustworthy, and experienced to make sure you’re in good hands.
Excelsior Worldwide freight logistics have been in the business for seventeen years and counting. With trained and experienced employees who uphold the principle of integrity, we provide only the best services to our clients.
Visit our website today at www.excelsior.ph to learn more about our services.
If you are planning to start an import and export business on an international basis, or you are expecting to receive or ship goods from an overseas market and you already have a list of potential suppliers at hand, the next step that you will take now is to choose the appropriate delivery agreement between you and your supplier.
By that point, you should have already familiarized yourself with the International Commerce Terms or Incoterms, which is a set of standardized trade terms published the International Chamber of Commerce or ICC. As the basis of delivery agreement between you and your overseas supplier, Incoterms usually includes the information on how goods will be delivered, who will cover the payments, who is responsible for insurance, and who handles specific shipping procedures.
The latest edition of Incoterms was released in 2010 and includes eleven rules which are divided into two classes – 1. Rules for Any Mode or Modes of Transport, which may be used without regard to any kind of transportation used; and 2. Rules for Sea and Inland Waterway Transport, which emphasizes that the point of delivery and the destination of the equipment are both ports.
To decide which of these rules is best for your import and export business, we will discuss all the Incoterms 2010 rules and weigh down the advantage of each in terms of passing on responsibilities and cost.
According to ICC, Ex works means that the seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place. This rule places the minimal responsibility to the seller or supplier since they only have to make the goods available, properly packaged at the specified place which is usually at the supplier’s factory or warehouse.
This is not typically used in the cross-border transaction since it presents many transportation difficulties. The buyer also bears all the cost and risks involved in collecting the goods from the seller’s premises to the designated destination.
FCA – Free Carrier
ICC defines Free Carrier as the agreement when the seller delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or another named place.” When the goods have already been cleared, it can then be delivered by the seller to the carrier at the designated location stated in the contract.
When the goods arrive at the point of location, the buyer will then assume the responsibility. If the location to deliver goods is not mentioned in the contract, the seller may choose within the place or range stated where the carrier take the goods into his charge. This term is usually used in container transport movements such as RO/ RO (roll on – roll off) used by trailers and ferries.
CPT – Carriage Paid To
Carriage Paid To means that the seller fulfills his obligation if they deliver the goods to the carrier or another person nominated by the seller at an agreed place. This is only applicable when the seller contract for and pay the cost of carriage necessary to bring the goods to the named place of destination. Like FCA, the seller may select the point at the named place of destination which best suits its purpose.
The risk of loss and damage to the goods, as well as any additional cost incurred after the goods have been delivered into the custody of the carrier is then transferred to the buyer. If ever that there are several successive carriers, the transport risk passes from the seller to the buyer when the goods are delivered to the first carrier in the chain.
In this term, the seller has no obligation to hire insurance transport to cover the goods from the point place of delivery to the point of destination. The seller is also tasked to complete all the formalities and carry all the costs of customs clearance for export, but not the import clearance needed in the place of destination.
CIP – Carriage and Insurance Paid To
In its most basic format, Carriage and Insurance Paid To means that the goods will be delivered by the seller to carrier or person nominated by the buyer at the place mutually agreed by the seller and the buyer, and that the seller arranges and pays for all costs for the transportation, including insurance (which is usually kept at minimum) of the goods up to the agreed port of destination.
Like CPT, the obligations of the seller end when he successfully delivered the goods to the carrier, but typically do not end until the carrier reaches the agreed destination. Unlike other Incoterms, the stipulated point of delivering under this terms does not necessarily mean that it is the final delivery point.
DAT – Delivered at Terminal
Incoterms “Delivered at Terminal” means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. “Terminal” may include place any place, whether covered or not, such as factory, warehouse, container yard or road, rail or cargo terminal.
Under this Incoterms, the seller must complete all the formalities and shoulder all the costs of customs clearance for export. The seller also bears all the risk involved in bringing the goods to and unloading them all at the terminal at the named port or place of the destination.
DAP – Delivered at Place
Incoterms “Delivered at Place” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. Under this Incoterms, the seller agrees to pay all costs and assumes all risks related to bringing the goods up to the place of destination.
DDP – Delivery Duty Paid
Incoterms “Delivery Duty Paid” means that the seller fulfills their obligation when they successfully delivered the goods at the named place in the country of importation. Under this terms, the seller has to shoulder all the costs and risks related to delivering the goods to the place of destination. Unlike the other Incoterms, the seller has also the obligation to clear the goods not only for export but also for import, which means that they have to pay any duty for both export and import and to carry out all customs formalities. While Ex Works is Incoterms that represents the minimum obligation by the seller, Delivery Duty Paid represents the maximum obligation.
Free Alongside Ship basically means that the seller fulfills their obligation when the goods have been placed alongside the vessel on the quay or on a barge at the named port of shipment. This means that the seller has to carry all the risks of loss and damage to the goods until the goods are alongside the ship. Under this terms, the buyer is required to clear the goods for export, and should only be used when the buyer does not have the capacity to carry out directly or indirectly the export formalities.
FOB – Free on Board
Incoterms Free on Board states that the seller fulfills their obligation when the goods have been delivered on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. This Incoterms indicates that the seller has to shoulder all the costs and risks of loss and damage to the goods until the goods have finally arrived on board the vessel, and the buyer will bear all costs from that moment onwards.
CFR – Cost and Freight
Cost and Freight Incoterms mean that seller delivers the goods on board the vessel or procures the goods already so delivered. The seller covers all the risks of loss and damage to the goods until the goods are on board the vessel. However, the seller has to shoulder the costs of bringing the goods from the point of origin to the place of destination. They are also tasked to clear the goods for export, but never on insurance.
CIF – Cost, Insurance, and Freight
Cost, Insurance, and Freight Incoterms is almost identical to CFR – with an exception for the insurance portion. Under this Incoterms, the seller fulfills their obligation to deliver when the goods are already placed on board the vessel or procure the goods already so delivered. Like CFR, the risks of loss and damage passes when the goods are on board the vessel. Aside from freight and clearance cost, the seller has to procure and pay for a marine insurance against the buyer’s risks of loss of or damage to the goods while in transit.
Choosing the appropriate Incoterms is one of the most important step in the shipping process as it ensures that both parties – the seller and the buyer – understands their responsibilities. It also streamlines the whole shipping process so that goods will arrive at the point of destination with less time and hassle, which is a win-win situation both for the seller and buyer.
If you have any questions about Incoterms, feel free to call Excelsior Worldwide Freight Logistics Corp. Call us at (+632) 525-9775 or email us at wecare@excelsior.ph
Importation is quite tricky, especially if you’re not aware of the costs that come with it. It is important to understand the basic charges you have and you don’t have to pay in order to come up with a solid figure you have to prepare when your goods have finally arrived in the port; cleared and delivered to your warehouse.
Aside from the product you have purchased abroad, here are some of the costs that you should assume from the importing process.
