5 tips to turn around your logistics cycle

There are great and easy ways to turn around your logistics cycle. It is not so hard as you may think. The only you need is to ask professionals for help and learn something on your own. Shipping is not only moving the goods from one place to another. You should consider it a hard job that demands your knowledge and effort. You should continuously upgrade your skills, too.

  • The first you should do is to start from yourself – organize job better and differently, and it will turn around your logistics cycle;
  • Do not forget on packing of the goods – although it seems as small and not that important for shipping; it could save money and time later;
  • You should not hesitate to ask or even hire professionals for help – they will show you how to make this job better for the future.

Luckily, there are ways to make your business better and more successful. Do not avoid advice and help, but try to learn with every new experience. It will make your business better in the future. Especially pay attention to small things, like packing.

A truck that could help you to turn around your logistics cycle
Choosing a good company helps you in a job

1. Consider the packaging options of inbound materials or export products

Some of the packaging used for exporting your materials could rise the freight charges up to 30%. While Saudi enjoys a strategic location in the world our lack of international rail system and the unified economic zones in the U.S and European Union make the cost of freight for a single export unit in our country above the international average. We had a client who would export barrels of chemicals to the GCC area with 40 ft. containers, changing his cargo method to breakbulk and setting packaging operations in one of his main clients’ countries has saved them in terms of time and cost of cargo. Keep in mind the international restrictions on some of the packaging materials.

Packing is one of the ways to turn around your logistics cycle

Since shipping success depends on the packing materials and size of the goods, you should know how to pack things properly. It also includes unique supplies, but significant ways of packing, too. Thanks to the moving companies, you can turn around your logistics cycle very quickly. Cargo transport in Saudi Arabia offers excellent materials for this purpose.

2. Ask suppliers for multiple incoterms quotes

The cost of freight for products purchased from foreign suppliers will be built right into the cost the goods purchased, sometimes you would not know how much you pay for the inbound freight. Vendors sometimes make a profit from internal mark-ups on any freight charges and include it on the final price you pay.

The best practice here is to ask the suppliers for two quotes: the normal one, and the ex-work option. This way you can take advantage of the consolidation opportunity and achieve better visibility on your supply chain. Some of our clients who followed this approach saved up to 75% of the freight charges when they utilized our European consolidation hub.

Choose the best warehouse

It is not a secret that a good warehouse means success in your business. You should pay attention to so many things, like the look of it and duration. Do not forget to check documentation and service with inspection for storage you have chosen. Luckily, you can find great storage in Saudi Arabia nowadays.

A highway
Good shipping company changes your business a lot

3. Select key forwarders & improve tariff rates

When considering the number of carriers, you hire to move your inbound and outbound freight consider reducing the number and selecting one or two key freight forwarders who can handle local transportation, too. This will ensure reducing the complexity of administering the different vendors, boost the volume of business with them putting you in a better position to negotiate lower unit freight prices, improve service levels, save on transportation cost and turning your freight forwarder into a strategic partner for your business.

Choose the right forwarders to turn around your logistics cycle

Not only that, excellent forwarders could change your working style, but they can also connect with the right clients, too. Thanks to their knowledge and experience, you can learn a lot about business. They also pay attention to things that you do not know that even exist.

The forwarder should be able to establish the most efficient travel routes and advise you on all paperwork to avoid expensive add-ons. One of our clients has 3 plants in 2 different regions. By consolidating the service contract, they were able to negotiate better overall rates and had access to all our warehousing facilities to consolidate and distribute their products. Also, they were able to use a different seaport to export to their new markets in North Africa than they were able to do when used many local carriers cutting the lead time 40% for their new clients’ urgent orders.

4. Freight Consolidation: smart logistics

In the off-season period, shipment volumes are not always sufficient to purchase freight in Full Container Load (FCL) or Full Truck Load (FTL). But in the logistics world, smaller shipments tend to cost more. Ask your logistics provider for consolidation options for smaller less urgent shipments. They should be able to pool smaller parcels into zones and ship in bulk to you.

If you are using multiple local suppliers for your goods, your logistics provider should be able to create consolidation hubs for you and ship the goods only when they are a truckload or you need them urgently. Be aware though that consolidation for multiple owners in the same BOL of AWB is not allowed by the laws of Saudi Arabia. So, all goods consolidated need to be yours.

Trucks in a highway
Optimizing the costs could help in working

Optimize costs

It should be the first that you can do to turn around your logistics cycle. There are excellent freight forwarding companies in Saudi Arabia that offer unique and favorable services in this situation. The only you should know is what you need and how to get it for a lower price.

Choose the best partners

It is not enough to find a good transportation company. You should cooperate with people from the same field, but without going into their businesses. The most important is to respect their time and needs.

5. Maximize customs compliance to turn around your logistics cycle

There are a few ways to change your logistics cycle very quickly. Thanks to modern technology and knowledge, you can change your business from the first step. Also, replacing the old habits you can completely change the success of your business.

If you are importing your final product or running operations on imported raw materials. Then this step is the most important. Make sure that you are updated on all new regulations and customs circulations. Make sure you are using all the exemptions that the ministry of commerce and investment is offering the manufacturers and make extra sure that you have valid chemical and security permits that your products need.

Some higher-level logistics providers will assist you on that and provide you continuous feedback on the process. However, it is better to invest in your team and teach them the process and the regulation and expect them to always check the customs website for any new news that may affect your supply chain. Failing to do so may cause you unnecessary demurrage and hurt your credibility with the customs authorities.

Automate what is possible

It is not easy to change your working habits and schedule. However, sometimes, it could affect the working success. When noticing that ordinary habits and jobs do not provide results, you should change practices. Make whole things automatic, so not many workers lose time on tedious and not productive activities.

Move all portable

Speaking about the automatization, you should put everything in a move. It means that you can do your job on the field, too. It will allow you to work in every situation without hiring new employers. Do not forget the standards in this job, also.

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