Transportation news and tips

Why are partnerships essential and always winning in logistics?

Logistics, by its nature, encompasses such broad and diverse processes that claiming one person or even one company can handle it all would be incorrect. LATCARRIER provides its clients with a full range of logistics services, but we also have numerous subcontractors and partners who assist in various logistics processes.

When it comes to our service for you, our goal is to ensure that with just one call, you can meet all your needs in freight transportation and logistics. We take care of organizing all the processes, making them efficient and cost-effective by involving partners when necessary. This is no secret — this is how all reputable logistics companies operate worldwide.

Why shouldn’t forwarders and transport owners be set against each other?

This issue sometimes arises in the corporate logistics environment, such as on transport exchange forums or in social networks. Transport owners often accuse forwarders of influencing prices and taking "too high commissions." Of course, such people could be asked several rhetorical questions, such as: why do they work with forwarders instead of finding clients themselves? Or why do people buy bread in stores instead of directly from bakeries?

Spreading such views misleads clients because pricing in logistics doesn’t depend on a single factor but rather on many. Fortunately, the perception that logistics companies or forwarders hinder transport companies is becoming outdated. People who have even a basic understanding of modern economic processes and their dynamics think differently and focus on collaboration.

What are the benefits for forwarders and transport owners?

If you look into the corporate processes of logistics, you’ll see that both parties — forwarders and transport owners — are equally important. Logistics companies or forwarders attract clients, communicate with them, and solve various issues for which you, as a cargo owner, driver, or transport owner, may not have the necessary knowledge, skills, competence, or even time.

As a company with our own fleet and a wide range of logistics services, we can comprehensively analyze such aspects of cooperation. We fully understand their significance and the necessity of partnership in all logistics processes.

What are the benefits for you, and what’s the best course of action?

The process of organizing freight transportation involves the interaction of many factors. Here are just a few:

  • Basic information about the cargo (dimensions, weight, specific requirements, or special needs).
  • Information about loading or unloading (how it will be done, who will do it, and in what way).
  • Information about the delivery location (can a truck with a semi-trailer access the site, or is a smaller van needed?).
  • Information about delivery speed (is express delivery required, or can it wait for a consolidated load?).

It’s clear that planning all of this requires a certain amount of time and expertise. If a transport company specializes only in providing specific services, it likely doesn’t see the bigger picture of how to organize everything properly. In such cases, it’s crucial that the logistics company you work with can adequately assess the necessary actions and involve partners for specific tasks.

Therefore, it’s important for you to understand that your logistics service provider is capable of organizing transportation efficiently and cost-effectively. That’s why the competence of the carrier, professionalism, and loyalty to the client are crucial, rather than just the company name on the CMR waybill or the vehicle's technical passport.

A classic example:

Does it make sense for a transport company to send its truck from Daugavpils to Riga when a partner’s available truck is already in Riga and can deliver the cargo? In this situation, all three parties win — the logistics company, the transport owner, and you as the client. This principle applies to logistics worldwide.

If you think you haven’t worked with forwarders yet, remember: the world’s most well-known logistics brands have long operated under the forwarder principle. Transport services for these companies are provided by subcontractors with their own fleets. This is no longer a secret!

Looking for a competent and professional carrier you can trust with transportation of any complexity? Contact us! We’ll take it from here!

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