How to Change or Switch Freight Forwarders
Key Considerations When Switching Freight Forwarders
A solid and positive relationship with your logistics team is essential regardless of your industry. Over time, your company evolves, or your relationship with your current freight forwarder may degrade. You may have been thinking about making a change and it's natural to have concerns. However, staying where you are may have more consequences than partnering with a freight forwarder more suited to your goals.
With over 100,000 freight forwarding businesses in the United States, you have plenty of options. However, choosing the right replacement is essential. Planning is critical to ensure the transition is as smooth as possible. With the right approach, you can switch to a provider that meets your needs with minimal disruptions.
Why Companies Switch Freight Forwarders
Organizations may have several reasons for changing freight forwarding suppliers. If you think your business may need a new provider, it's always beneficial to consider your motivations. Some common reasons businesses switch freight forwarders include:
Customer service challenges: Business relationships shift over time, and these changes could lead to a lack of basic customer service. If you feel that your current freight forwarder lacks professionalism and personalized service, it might be time for a change.
Business changes: Your business will grow, and your objectives will change over time. Your needs will deepen as you evolve, and you may require more than your current freight forwarder can provide. Many freight forwarders specialize in certain areas, and it might be time to find one that better aligns with your needs.
Insurance coverage: Your cargo encounters many risks on its journey. Ships transport over 41% of the total value of goods traded by the U.S., and they must contend with storms and other significant challenges. Some risks are out of our hands, but you can mitigate their effects with cargo insurance, which covers any shipment damage or loss. Freight forwarders are responsible for making insurance arrangements, so ensure you work with one who offers coverage alongside their other services.
Communication gaps: Clear and frequent communication is the backbone of successful logistics. If you're finding basic communication challenging for any reason, it could affect your ability to do business.
Technology discrepancies: Innovative technology is crucial in today's fast-paced landscape. The older the technology your freight forwarder uses, the more likely it is to impede productivity and profitability. If your freight forwarder uses outdated tech, you may want to work with a more modern organization.
How to Switch Freight Forwarding Companies
Many businesses accept subpar freight forwarding services because they feel it's easier than transitioning to a new provider. However, changing freight forwarding companies can be relatively simple. If you're considering an adjustment, the following steps can help you simplify the process:
Research Alternatives
You may want a different service, but research your options before you make any significant changes. Browse alternative providers online and look for one that meets your requirements. Ensure they are familiar with your industry and have testimonials to support their claims.
Talk to Your Top Contenders
Communication is paramount in logistics, so conversing with any freight forwarders you're considering makes sense. Choose some top companies from your research and reach out to them. A conversation tells you a lot about their value and customer service. Take the opportunity to ask them about their expertise and experience with your industry and shipping practice.
Look for freight forwarders that display a genuine interest in your business. They should care about finding the right shipping solutions for your unique needs.
Clarify Your Expectations
The more your potential freight forwarders know about your expectations, the better they can meet them. Communication is a two-way street, so tell them exactly what you want so they can give you honest feedback on whether they can deliver. Consider why you want to change freight forwarders and air your concerns to prospective providers. In addition, ask them to be clear about their expectations so that you're both on the same page.
How to Plan a Smooth Transition to Your New Freight Forwarder Business Partner
Once you've chosen a freight forwarder, the next step in the process is to ensure a smooth transition. Any disruptions can affect your operations, and you might end up in the same situation you were in before. Instead of rushing into a new arrangement, make your adjustments slowly and follow these simple steps:
1. Formulate a Transition Plan
Switching forwarders involves streamlining several processes. A transition plan guides the process and ensures your business continues to meet shipping deadlines. It also provides a timeline for a complete changeover and lets you handle some of your most pressing issues. Your transition plan should include a timeline for transferring new inventory, setting up new processes and communicating with customers.
2. Finalize Your New Standard Operating Procedure (SOP) Document
An SOP is an evolving document that outlines the practices, processes and communications between your business and its new freight forwarder. You can update as your relationship grows, but you should have a starting point before officially changing providers.
3. Start Small
Before you move all your shipments across to your new forwarder, send one or two across to get an idea of what it feels like to work with them. If they meet — or exceed — your expectations, you can send a few more. It might take longer to complete the transition, but it prevents you from being stuck in an undesirable arrangement.
3. Communicate Often
Set clear communication channels and expectations with your new freight forwarder. Communication can avoid any unnecessary hurdles during your reconfiguration. Making a significant decision can also affect your customers. Warn them about any potential disruptions beforehand so that they can make any adjustments.
4. Expect Disruptions and Be Patient
Any restructuring is bound to encounter some road bumps. Plan for these eventualities as best you can and remain patient and understanding with your new provider as they familiarize themselves with your business.
Ready to Improve Your Logistics? Contact Us Today!
If you need a freight forwarder that ticks all the boxes, look no further than CSL Express Line. We've provided customized logistics solutions to clients across industries since 1998. Our international relationships and industry experience allow us to find the best rates and most flexible shipping options alongside our in-house services.
We pride ourselves on staying abreast of the latest technology. We offer our customers a user-friendly portal so that they can track their shipments from start to finish. Our milestone emails provide complete transparency on where your shipment is at any time. One of the many secrets to our success is that we immerse ourselves in your business. We get to know you so that we can provide the individualized attention that sets us apart.
Contact us to learn more and start your exciting new journey today!
