Optimize Your Global Shipping: Top Freight Management Tips for Growth

In today's rapidly evolving global marketplace, managing international freight operations has become a critical challenge for scaling companies. As businesses expand beyond their domestic markets, the complexity of maintaining consistent product availability while managing costs and meeting customer expectations can seem overwhelming.

For scaling companies, the ability to efficiently manage international freight isn't just about moving products from point A to point B - it's about creating resilient systems that can grow with your business while maintaining cost efficiency and reliability. In this comprehensive guide, we'll explore four strategies from industry experts who have successfully navigated these challenges, helping you build a robust international freight management system that supports your growth while maintaining operational efficiency.

• Implement a Regional Distribution Center Strategy

• Streamline Production Management with Automation

• Build Strong Partnerships with Logistics Providers

• Invest in Secure Partnerships with Freight Carriers

Implement a Regional Distribution Center Strategy

From my experience while working in an Operations role, we implemented a regional distribution center (RDC) strategy to ensure consistent product availability. By partnering with third-party logistics (3PL) providers, we strategically placed distribution hubs closer to key international markets. This minimized transit times, reduced shipping costs, and allowed for faster order fulfillment. For instance, as we expanded into the U.S., we established an RDC in the New Jersey region, leveraging its robust transportation network. This eliminated the need to ship all products from our Europe facility, avoiding delays caused by customs bottlenecks. 

Additionally, we adopted freight consolidation to combine smaller shipments into larger ones, reducing costs and optimizing container usage. The results achieved were maintaining a 98% on-time delivery rate despite a 40% surge in demand, improved customer satisfaction, and reduced shipping costs by 15%. 

Advice for Scaling Brands: 

• Understand Market Demand: Identify high-growth regions and position inventory strategically. 

• Partner with 3PLs: Collaborate with logistics experts who understand local regulations and customs processes. 

• Embrace Technology: Use shipping management platforms like Flexport to track freight in real-time and optimize routes. 

Scaling brands should prioritize flexibility and efficiency in their supply chains to sustain growth while maintaining product availability across global markets.

Viraj Lele, Industrial Engineer & Business Unit Advisor, DHL Supply Chain

Streamline Production Management with Automation

In managing our logistics and shipping strategies during rapid growth, we streamlined our production management process with proprietary software that drastically reduced the time to get orders into production. This efficiency enabled us to deliver products to clients like Samsung faster than their previous suppliers could even provide a quote. My advice is to prioritize automation and develop efficient backend processes that reduce lead times while ensuring quality.

We also focus on cultivating strong relationships with our suppliers and partners, ensuring we have reliable channels for production and delivery. By verifying the quality and reliability of every supplier, as we've done at Mercha.com, you maintain consistent product availability even during peak demand.

For managing international freight, I recommend leveraging your data analytics to forecast demand accurately. This allows you to plan inventory and shipping schedules effectively. Build in time buffers for unexpected delays and collaborate closely with logistic partners to stay adaptable and resourceful.

Ben Read, CEO, Mercha

Build Strong Partnerships with Logistics Providers

A key strategy is building strong partnerships with reliable and cost-effective logistics providers while conducting regular price benchmarking to stay competitive. Aligning the company's goals and growth strategy with logistics partners ensures efficiency and consistency. Additionally, leveraging technology for demand forecasting and real-time tracking can help maintain steady product availability, even during rapid growth phases. 

For scaling brands managing international freight, I recommend developing contingency plans for disruptions, optimizing shipping routes, and maintaining clear communication with all stakeholders. This ensures adaptability and resilience in the supply chain. Combining strategic partnerships, competitive pricing, and data-driven decisions allows businesses to scale efficiently while meeting customer expectations. Always prioritize flexibility and proactive planning to address potential challenges in international freight management.

Orlemyr Sousa da Silva, Logistics Specialist, CNHIND

Invest in Secure Partnerships with Freight Carriers

If your business operates globally, you may want to invest in a secure partnership with your international freight carriers. Always consider the "expect the unexpected" approach, to avoid solely relying on carriers for your product and material to arrive as anticipated. Being prepared will ensure you have a contingency plan in place if and when disruptions occur. A comprehensive risk assessment of your network of freight carriers will provide confidence your product/material will continue moving and be delivered as required. 

Some areas to focus on would be documentation and compliance, technology and security, and overall due diligence of researching who you are partnering with. Proactive discussions of the "What ifs," for confidence that obstacles during transit would not impact any scheduled deliveries.

Georgina Fenning, Global Supply Chain Advisor

Building Your International Freight Strategy for the Future

As your company continues to scale, the importance of a well-structured international freight management strategy cannot be overstated. The four strategies outlined above provide a framework for building resilient, efficient logistics operations that can grow with your business. Remember that successful international freight management isn't about finding a one-size-fits-all solution, but rather about creating a customized approach that aligns with your specific business needs and growth trajectory.

Consider starting with one or two of these strategies that align most closely with your current challenges and gradually build upon your success. By implementing these strategies thoughtfully and systematically, you can create a comprehensive international freight management system that supports your company's continued growth and success.