The difference between supply chain management, logistics, and freight forwarding

International trade is more complex than it sounds; it is a very complex game. You will understand the game's complexity when you try to get your goods from one country to another.

During this journey, you may have heard terms like supply chain management, logistics, and freight forwarding a few times, and I understand you may have wondered how they differ from one another.

Well, fret no more! This blog will give you a deep understanding of supply chain management, logistics, and freight forwarding with related examples. You will also know how Air7seas, as an international freight forwarder, is a one-stop solution for your international shipping needs.

What is supply chain management?

Imagine a relay race in which the baton is your product, which is passed from different companies at various stages, reaches the end point, and becomes the winner. This is a basic understanding of the supply chain.

Supply chain management (SCM) is the strategy and oversight that ensures this race runs smoothly. It deals with everything from getting a product from its raw materials to your doorstep.

Below is a simple breakdown of how the supply chain works, with the help of an example:

• Sourcing: Finding and buying raw materials. (Example: A shoe company sources cotton from a farm in Texas, USA)
• Manufacturing: Transforming raw materials into finished goods. (Example: The cotton is sent to a factory in China to be spun into thread and woven into fabric)
• Distribution: Moving the finished goods to warehouses and retailers. (Example: The finished shoes are shipped from China to a distribution center in California)
• Delivery: Getting the product to the end customer. (Example: The shoes are shipped from the California warehouse to your local shoe store)

Think of SCM professionals as the race coordinators. Their expertise and coordination skills are crucial in managing the flow of information and materials between all the participants, ensuring timely delivery and minimizing costs.

How logistics plays an important role in supply chain management?

Now that the manufacturing part is over, the crucial move is logistics. Logistics involves meticulous planning, execution, and control of the physical movement of goods. It's the powerhouse that propels the supply chain forward.

Logistics professionals, with their expertise and experience, handle tasks like:

Transportation

Choosing the best and most cost-effective mode of transportation is the key to the shipment. Different types of transportation include:

• Air
• Ocean
• Land

The suitable mode of transportation, a strategic decision based on factors like cost, speed, and safety, is crucial. (Example: A logistics company might suggest shipping a large order of shoes by ocean freight for cost-effectiveness, while smaller ones can be shipped by air for faster delivery)

Warehousing

The customer sometimes requests extra time to hold the goods at the port for various reasons. So, the goods are securely stored in the warehouse. (Example: The shoes are stored in a climate-controlled warehouse to prevent damage)

Inventory management

Keeping track of stocks is a serious game for every business.

Doing so will help avoid shortages or overstocking. (Example: The logistics company monitors shoe inventory levels to ensure there are enough shoes to meet customer demand without incurring unnecessary storage costs)

Order fulfillment

Picking, packing, and shipping orders to customers. (Example: The logistics company picks the correct shoes from the warehouse, packs them securely, and ships them to the customer)

Logistics companies can offer various services, from managing a single warehouse to handling a company's transportation process.

Then, what is the role of a freight forwarder in supply chain management?

So, where does a freight forwarder fit in this journey of shipping goods globally? Imagine you're part of the relay race, but your leg involves crossing a complex international border.

A freight forwarder is your teammate who specializes in navigating this challenging terrain. They act as an intermediary between you (the shipper) and various international shipping carriers like airlines, ocean liners, truckers and more.

Here's what freight forwarders typically do, using the shoe example:

• Customs clearance: Handling the complex paperwork and regulations for moving shoes from China to the USA. (This might involve ensuring the shoes comply with safety regulations and duties are paid)
• Carrier Selection: Choosing the most cost-effective and reliable carrier for your needs. (The freight forwarder might compare rates and transit times between different ocean freight companies)
• Cargo Insurance: Arranging insurance to protect the shoes during transport in case of damage or loss.
• Documentation Management: Ensuring all necessary documents, like invoices and packing lists, are accurate and complete for customs clearance.
• Freight Tracking: Providing real-time updates on the location of the shoe shipment.

By outsourcing your international shipping needs to a freight forwarder like Air7Seas, you can free yourself from the complexities of global trade and focus on what you do best – running your shoe business.

Why Choose Air7Seas as your international freight forwarding needs?

We know that dealing with international shipping can feel like a nightmare. That's why air7seas offers a comprehensive suite of services designed to remove stress.

Here's what sets us apart:

• Experienced team: Our logistics experts have extensive experience handling all aspects of international shipping, ensuring your goods arrive safely and on time.
• Global network: We have a strong network of partners worldwide, allowing us to offer competitive rates and efficient transportation solutions, no matter your destination.
• Technology-driven approach: We utilize cutting-edge technology to track your shipments in real-time and provide you with transparent communication throughout the process.
• Customer-centric service: We understand that every shipment is unique. We offer customized solutions to meet your specific needs and budget.
• Competitive rates: We work hard to negotiate the best possible rates with carriers, ensuring you get the most value for your money.
• Focus on compliance: We stay up-to-date on the latest customs regulations to ensure a smooth and hassle-free clearance process for your shipments.

Advantages of using Air7seas

With Air7Seas, you're not just choosing a freight forwarder; you're gaining a team of shipping experts with over 37+ years of experience in the freight forwarding industry.

We've navigated the complexities of international shipping for decades, ensuring your goods reach their global destinations on time and within budget.

Our commitment to reliable, efficient, and cost-effective solutions allows you to focus on growing your business while we handle all the shipping logistics.

Conclusion

The world of international trade can be a complex web, but understanding the key players can simplify your journey. Supply Chain Management (SCM) acts as the mastermind, overseeing the entire flow of goods from raw materials to your doorstep.

Logistics is the engine that keeps this flow moving, handling tasks like transportation, warehousing, and inventory management.

Finally, freight forwarders become your teammates when navigating the hurdles of international shipping. They handle the complexities of customs clearance and carrier selection and ensure your shipment arrives safely and efficiently.

Air7Seas is your one-stop shop for all your international freight forwarding needs. With our experienced team, global network, and commitment to customer-centric service, we take the stress out of international shipping, allowing you to focus on what matters most – your business.

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