Independent freight forwarders seeking to enhance their sales and penetrate the global market can significantly benefit from affiliating with the best freight forwarders networks. These premier logistics networks, functioning as global alliances of accredited freight forwarders, empower small and medium-sized enterprises to bolster their competitiveness against multinational counterparts. By expanding their reach, establishing new partnerships, and broadening their service areas, these networks open doors to growth opportunities. Furthermore, aligning with the leading freight forwarding networks bestows an international brand identity, enhancing the reputation of smaller logistics firms.
However, selecting the ideal logistics network presents its own set of challenges due to the multitude of available options. With a surge in the emergence of new networks, not all of them align with your business objectives. In this post, we will explore several essential considerations that independent freight forwarders like you should ponder before committing to a freight forwarders network.
Key factors independent freight forwarders should consider becoming joining a logistics network
- Reliability and brand reputation
Independent freight forwarders should prioritize the search for a reliable freight network that elevates their brand’s image. Only a handful of logistics networks enjoy global recognition as industry frontrunners, with Globalia Logistics Network being a notable example. Becoming part of Globalia can bolster your brand’s reputation and expand the horizons of your business. Independent freight forwarders without an international brand and a network of dependable partners often encounter challenges in securing major contracts and competitive carrier rates. This can lead to collaborations with unfamiliar agents who may sporadically channel business your way or fail to meet their commitments, resulting in dissatisfied clients and outstanding invoices.
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Territorial exclusivity
Territorial exclusivity is a significant factor for numerous freight companies, offering them the exclusive representation within their operational region. In practical terms, this means that the company becomes the sole agent of the network for a particular port or city. This arrangement ensures that the forwarder enjoys the full spectrum of network opportunities related to businesses to and from the city where they are based. Globalia Logistics Network accepts only one agent per city/port ensuring that the agents get to operate as a virtual branch office of Globalia.
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Reliable partners
Arguably the most compelling reason why independent freight forwarders seek membership in a logistics network is to secure trustworthy global partners. In the industry, there are numerous freight networks that readily admit logistics companies as members in exchange for a membership fee, often without conducting thorough vetting. This lax approach can lead to the challenge of unreliable agents who may lack financial stability. To put it simply, an unvetted agent might end up being a problematic client, unable to meet financial obligations.
Consequently, companies must exercise extreme caution when engaging with such entities. Joining a reliable network that diligently screens prospective members before granting admission is a prudent way to mitigate this risk. The network should maintain a rigorous selection process that considers multiple critical factors, such as financial capacity, reputation, business volume, and creditworthiness, prior to welcoming new members. This should undeniably be a pivotal consideration for freight companies when assessing potential freight forwarder networks.
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Membership fee
Although the cost of membership is surely one of the important deciding facts, you should never make your decision based on the cost alone. There are several logistics networks in today’s market that try to lure in new members by offering an incredibly low membership fee. However, they do not serve the interests of the agents in any way. All they do is collect a membership fee in return for almost nothing. Moreover, the partners you will find as a member of one of these networks are unreliable since these networks are ready to accept any forwarder without a background check as long as they receive a yearly fee.
For this reason, even if you have to shell out a few more bucks, it is still advisable that you become a member of a well-reputed and globally acknowledged network like Globalia. The best freight forwarding networks have an impact on your sales and even provide added support and assistance.
With over agents across 215 cities in 131 countries , Globalia Logistics Network is one of the leading freight forwarding networks of our time. As one of the best logistics networks, it has better resources in terms of size and greater outreach than some of the largest multinationals. Moreover, Globalia Logistics Network is the first freight forwarding network with global coverage to launch an instant quotation ability for its members through its exclusive TMS: FreightViewer, which allows members to quote 24/7 in seconds. In other words, in exchange for a yearly fee, Globalia will provide you with an ideal platform for networking, collaboration, and digitization.
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The value of an international brand identity
When in search of a network, it’s only natural for freight forwarders to seek an elevated brand image. There exist very few globally recognized logistics networks that have established themselves as distinguished brand names within this industry. Joining one of these select networks is certain to enhance your brand image significantly. A globally acknowledged brand not only assures the highest quality of services but also broadens the horizons of your business.
Consequently, you gain access to a global brand name and a multitude of resources to further enhance the value you offer to your clients. Becoming a part of a well-recognized network also elevates your company’s profile and allows you to present your organization in a more favorable light. For this reason, even if it requires a slightly higher investment, it is advisable to consider becoming a member of a reputable and globally renowned network. This decision will prove highly advantageous in the long run.
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Boosting sales through network membership
The primary motive for joining a freight forwarders network is to establish an international network of partners and collaborate with them to boost your business volume. In pursuit of this objective, mere email exchanges and phone calls are insufficient. It’s imperative to meet your partners in person at least once a year to strengthen connections and engage in the networking essential for thriving in this competitive market. A network that is genuinely committed to the advancement of its member companies ensures the organization of annual conventions involving all its agents.
Globalia’s 5th Annual Meeting will take place in Intercontinental Resort, Bali, in April 2024. This gathering will allow the members to get together for face-to-face business meetings, providing an opportunity to explore the potential of exchanging projects in the forthcoming months. The meeting will have a positive, lasting impact on your organization, as it enables you to showcase your business to those who hold the utmost significance. Therefore, before embarking on your journey with a logistics network, it’s essential to ascertain that it facilitates yearly meetings with your fellow members.
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Financial safeguards
Within a lower-tier freight forwarders network, there naturally exist questionable members on whom you can’t rely when it comes to receiving your payments. It’s important to recognize that one of the most detrimental consequences of unreliable partners is their unprofessional behavior, which can lead to the loss of clients and a tarnished reputation for your company. Ideally, the logistics network you are a part of should offer a protective mechanism against unreliable payers.
Globalia Logistics Network, for instance, directs its members to promptly report any late payments. Failure to meet payment deadlines and recurrent late payments can lead to the expulsion of errant members. Furthermore, Globalia extends a Payment Protection Plan (PPP) that shields members from losses arising from unpaid debts owed by other members in cases of bankruptcy or insolvency.
Opting for a dependable logistics network like Globalia not only provides an ideal platform for expanding your operations but also enables you to significantly increase the volume of incoming projects by paying an annual fee. Additionally, you gain access to a range of benefits, including digitization opportunities that position you ahead of the competition.