| Article Title: Freight Logistics - A Hidden Factor, Freight Charges for Your Moving Consignment |
Back To Articles |
Logistics is defined as possessing the right amount of substance at the correct time and for the appropriate price. It is a discipline, which deals with the procedure of any organization and has operational and financial impact. It fits in with all types of industry segments, and administers the completion of project life cycles, supply chains, and ensuing efficiencies. Freight logistics involves working with experts who merge expertise in freight transport with focused knowledge of certain industrial sectors.
In the current scenario, logistics and supply chain matters are more important than ever before and have accomplished greater eminence within business circles. Several freight companies have got into joint ventures with companies that are focused in a sector, to achieve optimization of their services. There are several firms that grant outsourced or "third party" freight logistics services to companies. These providers are specialized in warehousing and shipping services are incorporated into their systems. This can be modeled to the needs of the customers and is alive to the demands and delivery service requirements of the market.
Regardless of the type of shipment involved, the basic principle underlying the expectations of the market has always been of exceptional standards in respect of quality and safety of the goods. Hence, several companies have come up with integrated solutions that have become popular with all freight businesses.
Online freight disbursement and contract tracking systems are available that provide authoritative control for the logistics procedure. Using these Internet based services it is even possible to track supply discrepancy reports. This single source information center offers access to the shipment data for carriers as well as transporters. This product also abolishes the requirement of merging of freight bills and invoices and ensures faster and precise payments.
Freight logistics solutions serve as an important tool for better managerial decisions and hence have brought about improved customer services
Owning a trucking company or logistics company (freight brokerage) can be very profitable. At the same time, transportation companies tend to be cash hungry. There are fuel expenses, employee expenses, operator expenses, repair expenses and many other expenses that need to be paid quickly. However, most customers don’t offer quick-pays and usually pay their freight bills in 30 to 60 days.
This creates a major challenge. Why? You have expenses that need to be paid quickly and customers that want to pay slowly. Unless your company has some available funds, you will most likely run into problems.
Many company owners try to address this cash gap by trying to get business financing from their bank. However, they soon learn that banks seldom provide business loans to small transportation companies. Unfortunately, a business loan is not an option for most logistics and transportation companies. So, what is?
In many cases, trucking companies have an option that is better that a business loan. It is called invoice factoring. Factoring can provide logistics companies with the financing they need to meet their current expenses and grow. And, as opposed to bank financing, factoring is easy to obtain and can be setup in about a week. So what is factoring? Factoring provides companies with an advance on your slow paying freight bills. This enables them to meet expenses while waiting to get paid by customers. It works as follows:
- You company delivers the load and invoices the customer.
- The factoring company provides you and advance of up to 90% of your freight bill.
- You can use the advance to meet all expenses.
- Once your customer pays, you’ll get the remaining 10% less a small factoring fee.
The cost of factoring can be anywhere between 1.5% to 3% per month. The cost is determined by your industry, the quality of your customers (who pay the freight bills) and the amount of financing you require. Freight bill factoring is a great solution for logistics and trucking companies and can help grow your company to the next level.
|
| |
| Article Author: Mr. Rajiv Kulshreshtha |
