In any supply chain management system, warehousing and transportation play a vital role. When you sign up with companies that have the low rates you can save on the cost of distribution. Running an efficient and profitable supply chain management system means you can expand smoothly. All companies that supply goods for third parties have very little profit margins. They have to look for ways of making the business profitable to stay competitive in the market.
Third-party logistics service providers serve manufacturers, marketing companies, importers and exporters. They use the trucking companies for moving merchandise to avoid the heavy expense of air freight. CFS’s are a vital element in any supply chain hauling interior-point intermodal freight. To pick up containers from the shipping docks they use the drayage services.
Due to the congestion on shipping and receiving docks, the containers are hauled to the container freight station. This is where they go through customs clearance. CFS is usually situated near ports and major inland distribution cities. The main users of CFS are the freight forwarders. Shippers and third-party logistics service providers also use it for their customers’ freight. It is a bonded warehouse that is licensed and insured. Most facilities have modern security systems and software to manage third party goods and their movements.
When you export goods to a foreign country, the ship may not be leaving dock every day to go to your specific port of delivery. If the shipment is less than a container load then it has to wait till the same type of freight from various customers comes in. When the container is filled, it is sealed at the container freight station. Your shipment can stay safe for as long as it is at the bonded warehouse. You can do whatever you like with the shipments. Most companies have their stock prepared for shipment at the freight station if they are short of space. This gives them the time utility. They can package it themselves or use the help of the CFS staff.
All these freight stations have a local and a foreign trade zone. Importers can take advantage of the storage space by keeping it in-bond by filling a customs form. This form allows them to store the goods beyond the jurisdiction of the US Customs and Border Patrol. This way, businesses can sell their goods first and pay duties and taxes later.
Some container freight stations will also allow you to use their facility as a container yard. If you have no space at your business facility you can use their yard for storage. It can stay there if it is destined to be shipped out or coming in from the port. Container yards are also called as dry ports or container terminals.
New businesses can benefit a lot from these bonded warehouses. They can use the facility as a fulfillment center. New importers will not have to pay any duties and taxes and can go ahead and break the bulk shipment in small packages and get orders for sale while all the merchandise stays safe in the warehouse. Most new shippers have the less than container load shipments that are best managed at the warehouse.
Some container freight stations have temperature-controlled storage areas for perishables. If you want to import and export goods look for the warehouse that has the refrigerated trucks. The shipments will be handled promptly. It will be packaged in the way you want and then get delivered on time in a good state. If you sign a yearly contract you can get the special rates. Most companies get a dedicated staff that takes care of all their inbound and outbound shipments. They also take care of the inventory and update it on the software. Client access to the software allows them to check their inventory levels from remote locations.
Companies that manufacture goods and import raw materials or components can store the same at the container freight station. They can pull out as many raw materials they need for production and leave the rest at the warehouse. This eliminates the need for manufacturers to make a warehouse for the storage of raw materials. Constructing a warehouse can be very costly and using the space of the CFS is a more viable option. Hiring staff to prepare packages for onwards shipments can cost a lot of labor dollars. The CFS employees do all the picking and packing which save companies from additional operational expense.
Sometimes the manufacturers have a surplus of order and do not have the space to store the finished goods. They can use the storage space of the warehouse at an affordable cost. They can also begin to stuff the container if they like and then ship it after it is full.
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