PRIME FREIGHT’S GUIDE TO AN EFFICIENT SUPPLY CHAIN MANAGEMENT

Cargo Origin

In today’s complex trade world, almost all products are manufactured in different zip codes from where they are delivered to the final consumer. Companies’ supply chain will depend heavily on the location of the manufacturer of the products. Transportation between origin and destination normally begins with shipping the cargo from the manufacturer’s site to the closest airport or seaport. In addition, oftentimes products are delivered to an intermediary warehouse where they get inspected, repackaged or consolidated with other cargos destined to the same destination. This will not only affect the overall cost of shipping, but it will also influence transit time of the cargo.

Moreover, local rules and regulation should be considered at the place of origin for each specific cargo. Most countries and local governments have standard procedures before authorizing certain products to be exported from the region. This could be as simple as obtaining an export document from authorized agencies or as lengthy and detailed as inspection or even periods of quarantine. This too can significantly affect cost of shipping and transit time.

At Prime Freight we always begin our origin research by answering the following questions:

•  where is the cargo manufactured and whether it needs additional re-work prior to shipment.
•  where are closest airports and seaports located at and what options we have for ground transportation.
•  what rules/regulations apply to each specific cargo and what kind of documentations we need prior to loading.

Only when we have an answer for these 3 questions we can proceed to fully plan your supply chain to ensure an uninterrupted and streamlined process.

Transportation Methods

Airfreight, Ocean freight and ground transportation are widely used to move cargo between manufacturers, distribution facilities and final consumers. Depending on the volume of cargo, desired transit time and origin/destination locations, the decision is made on which mode of transportation to choose. For high volume cargo the most cost effective method of transportation is ocean freight. However at times when short transit time is desired airfreight method is inevitable despite its higher cost. At Prime freight we analyze your shipment by carefully considering supply chain requirements before choosing one (or more) transportation method(s) to deliver your cargo ahead of schedule while keeping the overall cost of shipping as low as possible. This process is repeated on every single shipment since we understand supply chain requirements can change over time. We understand that keeping the customer engaged and informed is necessary during the planning phase. We also understand that initial plans need to change from time to time due to unforeseen circumstances and that is why we always keep an eye on the process and make necessary adjustments if needed.

Inventory Requirements

Inventory requirements will direct how/when cargo is moved to keep your supply chain running. It will not only affect the shipping portion of the supply chain but it will also greatly influence the warehousing and distribution stages. As a full service logistics provider, we coordinate your shipments with our warehousing operation to streamline the transition between various stages of your supply chain. We will also manage your inventory in our Warehouse Management System (WMS) and will give you an access to it for full transparency. This will enable you to focus on core objectives of your business while relying on us to move, replenish and manage your inventory.

Cargo Destination

Before cargo arrives to its destination there are several important steps to be taken and many critical issues to be carefully considered. The first step is to clear the cargo through the customs authority in the country of destination. There are typically many rules and regulations to be followed and multiple procedural filings to be done in order to successfully import the cargo. Our import specialist team will review all these requirements before the cargo is loaded on the vessel at origin. It is of utmost importance to fully understand the import process otherwise long delays and significant amount of penalties could occur.

In addition, cargo transportation in destination highly depends on how the cargo is handled prior to delivery to final consumer. In today’s digital world of commerce, products normally go through multiple warehousing facilities before it is finally shipped to the ultimate consumer. One such example is when customer has purchased an Item on Amazon, Walmart, Target or other online retailers. A common path for such shipment is as follows: Cargo arrives at a port or airport close to the retailer’s fulfillment facility. It is first delivered to a 3rd party logistics warehouse for further handling, labeling and other desired rework. Then it is delivered to the retailer’s facility in smaller batches overtime. From there the cargo is then packaged and shipped to the final consumer.

At Prime Freight we always begin our destination research by answering the following questions:

• Where is the final destination for cargo and whether it needs additional re-work prior to delivery.

• Where are closest airports and seaports located at and what options we have for ground transportation.

• What rules/regulations apply to each specific cargo and what kind of documentations we need prior to importation process.