Why is it important to control your international and road logistics?

When you decide to take your car, take your car, do you prefer to drive or let yourself be driven? The majority of you will prefer to drive and be in control. Why, when we talk about Logistics, leave the responsibility for transportation to our suppliers? Don’t we want to control our destiny and optimize our supply chain?

Part of the business community prefers to leave transportation to the supplier, a matter of responsibility. But in reality, at the end of the day, we are always responsible to our end customers. If our overseas supplier chooses its forwarder and a 45-day delivery time for our shipments of goods, then my service provider offers us a more economical alternative with a 30-day transit; Why not take advantage of it?

Taking control of logistics generates results with many benefits, such as service level agreements (SLA), general performance evaluation, visibility across the entire supply chain, financial benefits, not to mention the establishment of a partnership with your service provider. By determining the most appropriate incoterm for your purchases (Group E or F), you then have the responsibility to choose the carrier and, as a result, not only have full visibility on your supply chain but also only one service provider to manage.

Indeed, the selection of a carrier/transiter allows you to implement a service level agreement (SLA) and to monitor the evolution of the quality of service at predetermined intervals and according to key indicators of performance. In addition, your business is now of particular interest to the carrier: you are ready to entrust all of your transportation transactions to the carrier. Generating shipment progress reports, tracking orders including sending custom automated reports, and planning supplies with your suppliers based on ship departure days are just a few of the benefits of taking control of the transportation. In addition, the carrier will be happy to assign you an account manager who will take care of you during the trip you will make together.

It goes without saying that controlling its logistics also has positive financial consequences. When your supplier drives your ‘car’ (incoterms Group C and D), it does not do so for free. It is paid of course on the sale of its products, but also on the profit made on transport costs. There are no studies specifically devoted to this point, but according to information collected from various international carriers over the years, the percentage of profit would vary between 25 and 40. Do you really want to let your supplier take advantage of these gains?

Moreover, by mastering your logistics, you eliminate the intermediaries: no transport broker who hires a road carrier, no supplier who contracts a broker. You are now in direct contact with the carrier/transiter.

With more than 30 years of experience in this field, 2.0 Consulting is ready to assist you in taking control of your destiny.