Logistics Management and How Freight Forwarding Services Help You

The growth of a business depends on its ability to produce quality items and products that consumers want. Without the demand, a business will falter and eventually die. Companies have to invest a sizeable sum of resources, effort, and time into the product-making process.

For example, purchasing equipment costs money, and so does hiring and training skilled workers. But it is not just manufacturing and developing products where you need to focus your attention. Business owners need to check all parts of their production and sales system that includes the movement of goods and services–also known as logistics.

Logistics is a vital part of any business, but sometimes, it might get overlooked. Freight forwarding and other services are more important than one might realise.

Logistics refers to the organisation and management of the flow of goods, materials and more. Logistics management aims to make the acquisition, storage, and transportation of resources smoother, more efficient, and faster. The entire system spans from the point of origin to its destination. When delivered, goods are further refined or consumed by the customer.

While product refinement and consumption are two important aspects of business, they will not take place without the proper resources. The constraint is why business owners must pay attention to logistics. Transporting resources from point A to point B is the backbone of modern economies. Businesses need to consider how to reduce the transport time and inefficiencies in their supply chain, which is where freight forwarding companies in Singapore step in.

What is logistics management? How does freight forwarding help?

Logistics management is a field within supply chain management and engineering. It focuses on the implementation and improvement of the flow, reverse flow, and storage of goods. It aims to minimise the time and resources used in moving and storing the products. When this objective is achieved, you can maximise the profits you make on your products.

The hardest part about the logistics process is when one needs to move resources in or out of the country. The paperwork and legal requirements of importing high volumes of certain resources may be too tedious for a company to complete by itself. No one wants to get stuck in legal limbo with their business resources.

Thankfully, companies do not have to brave the process alone. They can reach out to a third-party provider of international freight forwarding. A freight forwarder or forwarding agent is a person or company that organises shipments from a manufacturer or company to another party, such as a wholesaler, retailer, consumer, market, or other final points of distribution.

A freight forwarder coordinates or ships goods from one place or another via multiple means. They can arrange for transport via aeroplanes, sea vessels, railways, land vehicles, and more. A freight forwarder takes over the process for a business so they do not have to worry about the problems associated with transporting goods.

What is logistics management? How does freight forwarding help?


Freight forwarding, especially international freight forwarding services, helps companies focus on other parts of supply chain management. A freight forwarder will take over the most complex parts of the transportation process, including handling legal documents like importation and taxes. They also communicate with couriers and shipping companies.

Aside from eliminating difficult work, utilising freight forwarding services benefits businesses in many other ways. Here are a few of them.

1) Freight forwarding ensures your shipments arrive on time

Time is of the essence when shipping some products and resources. Delays in transporting your resources may result in damage, spoilage, loss of profits, and more. With a competent freight forwarder, you will be able to negotiate regular shipment schedules and minimise delays from mistakes in shipments.

2) Freight forwarding companies can broaden your logistics network

Good relations with logistics partners are what a business needs to reduce its shipping time and increase efficiency in logistics. When you have the best freight forwarder in Singapore by your side, you are exposed to an extensive list of logistics partners. Sea freight, air freight, and freight by rail and land all require different logistics partners. If you are looking to get in touch with different shipping companies, your best bet is to hire a forwarding agent.

3) Freight forwarding is more cost-effective

Consider the possibility of shipping the goods yourself. Unless you have a fleet of vehicles and trustworthy drivers that can easily carry your goods to their destination, you will have to vet shipping companies to ferry your goods. You will need to complete the legal paperwork for your items yourself, and you will need to find a way to store your products temporarily too. A business owner is better off hiring a freight forwarder. A freight forwarding company might already know the courier and shipping companies. Bulk shipping with other clients can lower the prices of the entire shipment. In addition, they can negotiate better service terms for clients.

4) Freight forwarding is simply more convenient

The last and most important benefit of freight forwarding services is that it is more convenient than your other options. Both business managers and employees have duties and responsibilities. Their time is better off spent contributing to business productivity than filling out routine paperwork for shipments. A freight forwarder’s job deals with customs and other barriers to shipping goods. Freight forwarders may have better luck dealing with officials as they may have better relationships. You can avoid mistakes that cost you time and money. A freight forwarding company helps you bypass tedious parts of your logistics system and optimises it.

STAR CONCORD is your friend when shipping products and materials to and from destinations. To know more about the best freight forwarder in Singapore, check out their website for more details.