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Sea and air freight operations...
International transport often has great untapped potential for
cost savings in businesses, because of the lack of specialist knowledge
at a senior level.
The Air / Sea Freight Forwarding and the International Transport
markets are large, fragmented and operationally complex. The further
issues of transfer pricing, application of currency exchange rates,
appointment of agents, payment of customs duties, payment of suppliers
and documentation requirements often involves several internal functions
blurring the central issue of "ownership of cost control".
Often the lack of in house expertise and experience at a management
level means there is no effective review of the total processes
and potential cost savings are lost.
There are different modes of transport and many different techniques
for moving goods in a cost effective manner, and many companies
retain the same processes and approach for many years without review
because the subject does not feature high on the business agenda.
Companies often accept their freight and customs duty costs without
questioning the basis of the calculations. The fixed percentage
of material costs is rarely challenged in management reporting data
and appears year after year in the preparation of budgets. This
is usually happens because senior management is often less experienced
in this specialist area and cannot devote the time to acquire the
necessary level of knowledge.
Bisham can help by :-
- Reviewing your existing supplier contracts at a detailed component
cost level to ensure cost effectiveness against current market
rates.
- Reviewing Transfer Pricing strategies to maximise financial
gain.
- Auditing Customs Classifications and Duty Payments to minimise
liabilities.
- Preparing and structuring Contract / Bid Tenders to obtain the
optimum service levels at competitive and cost effective rates.
- Provide support to manage the successful implementation of new
supplier contracts and procedures.
- Review primary regions to understand the implications of "who
pays the freight"
- Analyse shipping line and forwarder service offerings
- Identify the best gateway port contracts and intermodal opportunities
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