Logistics Trade Requirement

Door-to-Door Services

The term door-to-door in international logistics is commonly understood to mean the movement of a cargo from its point of origin to its destination. This service is different from other common transport movements as port-to port, factory-warehouse or movements during which the cargo changes ownership. Door-to-door service may involve a sequence of movements on different modes of transportation, or even temporary storage of the cargo en route.  The key feature is that it involves the intact movement of a particular cargo and is often associated with a single transaction in which a logistics service provider assumes responsibility for the cargo for the whole journey.

Most large logistics service companies today offer one-stop, door-to-door  shipping capabilities—they transport goods for one price, then determine the best intermodal transportation and warehousing arrangements to meet customer requirements  as cheaply as possible.

Preference for Arranging Inland Transport

In an international business, the inland transportation is the critical component in taking the product and service from port to the location and vice-versa. This service is provided either by own transport or Third Party Logistics service provider. The key factors for selecting a inland transportation are summarized below.

• Provides better control over service,
• Preference to use own forwarder/customs broker,
• Lower cost,
• Better services by inland carrier can be rewarded
• Preference for own representative at port,
• Possibility of prioritizing inland movements,
• Possibility of diversion to other inland destinations
• Ease of dealing with inland carrier instead of vehicle operators

Expectations about Transport Services Provider

Transport Service Provider performs a vital role in physically moving the goods from the manufacturer’s location to the trade centre and customers. The expectations from a Transport Service Provider are summarized as under.

• Capacity to organize and manage international transport operations and to accept carrier responsibility from start to finish.
• Management of warehouses for distribution and use relevant modern technology for transshipment and storage.
• Real time communication linkage between the shipper, transport operator and the consignee.
• Comprehensive solutions to the material supply to the production facilities as well as to the physical distribution of finished products to final consumers.
• Quality and reliability in all distribution operations

Transport Service Provider’s Expectation of Shippers

The following are generally the Transport Services Provider’s expectations of shippers.

• Long-term contract facilitating investments in customized transshipment warehouses and distribution platforms.
• Comprehensive and clear information on the goods to be transported particularly in terms of handling, storage and transportation.
• Flexibility on designing transport chains.
• Connectivity with shipper’s information system.
• Fair remuneration and dealings on the transactions.