What is freight management?
In its most basic form, freight management can be explained as the process of overseeing freight. But more specifically, according to the Logistics Dictionary, freight management is explained this way:
“”Freight management is the process of overseeing and managing cost-effective cargo operations and delivery. Freight management combines logistics experience, human resources and knowledge to ensure smooth coordination between carriers and shippers.””
But which responsibilities are considered essential in freight management?
In its basic form, by definition, freight management roles can include, but are not limited to:
Choose a shipping company, make connections, hire a carrier and ship
Consult and negotiate terms and conditions, rates and expectations
Prepare proper paperwork to accompany the shipment in transit
Schedule and arrange transport personnel to collect and deliver goods at specified times
Optimized mode selection, truck routing and load balancing
Track the movement of goods throughout the supply chain lifecycle
Hire, select and work with customs brokers to ensure customs compliance
Confirm that insurance is in place to cover the goods in transit
Manage freight claims
Process and supervise receipts, payments and invoices related to the shipment of goods
Seize the opportunity to optimize cargo transportation to improve shipping performance, reduce travel time, lower costs and reduce environmental impact
What is a logistics company?
Unlike freight forwarders, logistics companies own all their assets, including intermodal fleets of trucks, boats or planes, but have no access to actual shipping routes. Logistics companies usually specialize in specific areas, such as dry box, long-haul, refrigeration, intra-city or large-scale. At the same time, they will try to cover all aspects of the supply chain.
Typically, logistics companies are responsible for managing the physical movement of goods through the supply chain. In some cases, they can also manage documents.
For simplicity, logistics management activities can include:
Customer and Supplier Order Management
Warehousing and distribution planning and management
Packaging and shipping management and handling of materials
Import and export logistics
Strategic planning of supply chain and transported goods
Supply chain network and connection optimization
Information flow, tracking and traceability management
Supplier relationship selection and management
Cargo Flow Analysis and Optimization
Start-to-finish supply chain visibility and processes
asset Management
What is the main difference between freight management and logistics management?
Individuals who are not deeply involved in the supply chain segment will not recognize the main difference between the terms freight management and logistics management. But with clear definitions and references to the tasks planned and performed by each term, you can see a clear difference.
Logistics management is a broader, all-encompassing term covering a wide range of activities and key responsibilities.
Freight management is a subdivision of broader logistics management, but of similar importance. There can be no successful logistics management without an effective and comprehensive approach to freight management. Many organizations face collective failure without precise integration of the two management services.
What are the benefits of a freight forwarder?
There are multiple benefits of working with a freight forwarder compared to a logistics company. Advantages include:
A network of multiple logistics companies to help lower prices in a more diverse way
Technology-based freight forwarders can provide instant quotes
Pricing is more transparent as most freight forwarders provide customers with a detailed breakdown of all costs
Maintain data on specialized routes along with route optimization to help minimize delays and ensure timely arrival of shipments
Have a good understanding of logistics companies in many different specialties, including household goods, fragile goods, cold storage, etc.
In addition to these benefits, freight forwarders can handle all paperwork associated with freight forwarding, including customs documents, bills of lading, export declarations from shippers, insurance policies, and invoice letters.
Final thoughts:
The effective execution of freight management and logistics management is key for any type of business to expand its scope to the desired height. It signifies cooperation with experienced logistics companies such as TJ chinafreight to ensure your cargo safety and fast delivery service. We have the ability to provide fast, damage-free service to remote areas of Utah. Our primary purpose is to help your business meet precise logistical requirements, regardless of your business type, size and operating model. We’re happy to provide your business with a highly streamlined shipping process that supports you in reaching the level you need at a cost-effective price.
