In today’s business scenario more and more business enterprises are opting for global outsourcing from low-cost countries to cut down on cost and operational overheads. However, the rising fuel prices and long distance freight charges continue to pose serious challenges for the logistics industry. The global flow of goods requires multiple contact points like carriers, customs and port authorities and consolidators among others, which can increase the risks of unexpected events and delays. However, businesses can enhance their operational performance by following the best practices in air freight logistics.

air freight logistics

Here are the Best Practices in Air Freight Logistics:

1. Choosing a reliable carrier

Building a strong relationship between the business enterprises and the cargo providers can be very crucial in ensuring the timely delivery of goods. Make sure that the freight carriers you choose are financially robust and have a well-balanced team that will offer seamless service and the best value for your money. If you are venturing into a new market or launching a new product, choose a freight provider who can ensure proper management of licenses, taxation and liaisoning with customs officials, which will enhance the scope of their services.

2. Use Digitization and Technology

State of the art technology in managing logistics will ensure faster operations and enhanced efficiency. Digitalization of documents will ensure easy storage, transfer, and access to documents and will boost the quality and security of information processing quality and turn- around time. Businesses will get all the information in real time and can coordinate the activities to manage the timely delivery of goods. Integration of technology into the operations will ensure a competitive edge by cutting down the cycle time, enhancing accuracy and the quality of operations and the implementation of cross-functional processes. Make sure to think of innovative methods to manage costs and the complexities of trans border transportation of goods.

3. Optimize the flow of goods through intelligent routing

Companies with bulk freight volumes have had an upper hand in controlling the International transportation planning process to determine to route for specific countries of origin and destination. However to optimize the goods flow and to ensure maximum utilization of the containers, now freight companies are adopting a dynamic mode of operations where they can decide on ports and carriers and find consolidation opportunities across their international shipment volumes to reduce cycle times and costs. Some of the options being considered by freight companies include doing merge-in-transit, pool distribution and trans-loading among others.

4. Inventory Management

Inventory is one of the largest assets of any freight company and a proper tracking mechanism is highly crucial in the management of the finances of the enterprise. Attaining inventory accuracy will help businesses to avoid theft, goods in short supply or surplus goods and more. A proper inventory management will ensure a steady supply of goods and will optimize the transportations and storage costs.

Business enterprises can adopt inventory quality programs such as ISO, Six Sigma, lean manufacturing and Total Quality Management. An inventory metric must be created and tracked from the point of origin to its final destination, which will give them a clear picture of the inventory movement across the entire network, which will make it easy for them to bring about any corrective measures if any.

5. Regulatory Compliance

Declaration of goods in compliance with the regulations of respective governments makes an important practice. Noncompliance could invite penalties and delay in the movement of goods or detention of goods. As different countries have different rules on export, import, and customs declaration, a thorough declaration of local regulations is essential. The heightened security concerns across the countries have made goods clearing at international custom points more challenging these days. Noncompliance of customs and security requirements can cause loss of time and money.

Business enterprises can achieve process efficiency by following these good practices and availing the services of an expert Air Freight Logistics service provider. International logistics is a different ball game altogether and poses a set of complexities that require the services of logistics experts. Businesses can leverage years of their expertise to bring stability to your supply chain. Interested to know more on the best practices of air freight logistics? Call the experts and get started right away!