Save Rs.75.4 lakhs on logistics cost with one simple trick
What if you could save Rs.75.4 Lakhs easily? What would this additional Rs.75.4 lakhs mean to you - more profit, additional office, cost of one VP covered?
So, how and from where do you save that extra money? A bit of math and some smart decisions can do just that for you. Here's the trick... compare landed cost instead of Ocean freight for your export shipments. Maybe you knew it, maybe you didn't. If you didn't, it's been one costly slip.
Here's the math - learn it, use it and save extra Rs.75.4 Lakhs
Over the years, freight forwarders who are responsible for your freight bookings have got smarter. They know you are comparing only freight cost to decide which freight forwarder to award the shipment to. Hence, they quote rock bottom freight cost, but what they do not tell you is the other hidden costs, such as, the local port charges (THC-Terminal Handling charges, BL charges, Seal Charges, MUC, Toll etc). You get to know of these additional costs only when the final bill reaches you - 40 days after the vessel sailed.
What if there was another freight forwarder who may not have quoted rock bottom freight cost but was really the lowest on landed cost. And, it missed your eyes.
How would this happen?
The local charges of shipping lines vary hugely. For eg., Safmarine charges THC of INR 6515 while ZIM charges THC of INR 9050. That makes it a difference of USD 40 on each container! All else being equal, who will you give the shipment to - Safmarine with 200 USD freight or ZIM line with 175 USD freight?
How much difference does it make?
In as much as 36.9% of the cases, the vendor with status L1 is not the lowest when evaluated on landed cost basis. That amounts to 4.19% of the total logistics cost of the company, for a 200 shipment a month volume, this is whopping Rs.75.4 Lakhs lost annually.
Probably you knew this but you never thought it could be this big. Good news is now you know it. And, this year you will save that Rs.75.4 Lakhs for sure.
Did you say 1.5 Cr in your mind? You must be shipping 400 containers a month.
Gocomet is the world's best freight quote comparison platform. Our only job is to save your money. Our enterprise SaaS product is used by manufacturing companies to drive sharp reverse auctions bringing out the best possible end to end rates for international shipments.