The latest industry data shows that the largest twenty global forwarders are losing market share all over the world, with independant and regional forwarders pushing forward with growth.
Why are the independants thriving so much?
When an importer or exporter starts looking for a freight forwarder it is important to consider the respective attributes of large multinationals and independant small to mid size forwarders before choosing between them.
On the surface, multinationals seem to have everything, extensive global presence, recognised branding, strong infrastructure, buying power to negotiate lower rates, impressive brochures and apparent financial stability. However, the internal systems of a mutinational are generally inflexible requiring the customer to conform to their system rather then provide the flexibility to offer bespoke solutions to customers which are tailored to meet changing demands and unexpected requirements.
Independant Freight Forwarders hold a number of advantages over their larger competitors.
Our independance means we aren’t required to conform to the internal bureaucracy set by most large multinationals which means we are free to encourage entrepreuneurial spirit or alternative thinking that often restricts multinationals from taking on business that does not adhere to their own model.
This flexibility allows us to tailor the best solutions to the needs of each customer, whether your accounts need to be issued in a certain format, your pallets picked in a particular way or the ability to react rapidly to changing market conditions. We will design a system to fit in with you, rather than requiring you to conform to a rigid system.
The boutique manner in which ASP Global is structured, results in decision making processes that operate quickly and efficiently rather then requiring approval through hierarchic management which can be a long, drawn out process. Our philosophy is that highly trained consultants who are directly involved in the decision making process rather than supervised by many layers of management are happier and more productive, resulting in better service delivery to our customers. This means that our customers are always able to speak to the person who provides the service and has the ability to find alternative solutions rather than a telephone consultant provided by an offshore business processing facility without the knowledge required to find a solution to your problem.
Whilst multinationals have the advantage of offices in the major cities of the world they must always work within their own network while at ASP Global, our global network through WCA allows us to use an alternative agent overseas if our customers require. Through WCA we are able to maintain our independance as a forwarder whilst benefiting from global coverage, payment protected environment, collective negotiation with carriers and internal discipline as if we were a multinational.
Critical mass is a high priority for multinationals as it allows them to ensure their requirements are static and predictable. This can result in the largest customers being prioritised, whilst smaller customers struggle to engage as their business does not provide sufficient critical mass to warrant a response.
At ASP Global we ensure our smaller customers are provided the same level of service as our larger customers as we believe customer service and relationships are a priority.
Whilst potential customers may choose to use a multinational forwarder on the basis that the sheer buying power of a large multinational results in a lower rate for the customer it is important to research the company thoroughly as many are unaware of the widespread collusion to fix prices by many of the world’s largest multinationals, investigated by numerous commissions worldwide and resulting in criminal fines in excess of AUD$225 million. Sheer buying power certainly didn’t help their customers.