Dynamic Transport Logistics Solutions Inc is a small freight forwarding and logistics company based in Mactan, Cebu, Philippines. It was started in 2018 as another company, Noatum Logistics Philippines Inc, had a risk to close that happened in October 2020. The new organization caters to one-stop-shop services to clients who import raw materials from China and export finished goods to the USA. It outsources parts of this process, such as trucking, customs brokerage, and shipment booking, to reduce cost and deliver its service most effectively. There is a success of these outsourcing processes that may be evaluated by using definite metrics.
Trucking
Trucking is a business of transporting some goods or cargo, and transportation processing mean the creation, change, or cancellation of purchase orders and appropriate documents required to invoice them. Dynamic Transport Logistics Solutions Inc outsources trucking and customs services since it does not have enough resources to do this by itself to cater one-stop-shop services to clients. The company used PWL and RRT trucking to pick up the cargo and deliver the clients’ import shipments.
Customs brokerage
Customs brokerage is a domain of all trucking processes that facilitates the shipment and delivery of goods or cargo across borders for different clients – individuals or organizations. Firms that provide such services are in demand and necessary. They have to know all regulations, rules, and laws concerning the import and export of goods. The rules constantly change worldwide, which can make a big problem for trucking companies if they analyze them themselves because they cannot concentrate on their business. It is a moment when customs brokerage companies may help, for they must know all specifics of the processes and ensure rules, regulations, and laws are followed during shipping goods.
Dynamic Transport Logistics Solutions Inc outsources the services instead of hiring a licensed customs broker. For example, it used the RGL firm to process the export declaration processing. Therefore, whenever a client has an export shipment, he usually provides the company with the cargo details stated on the packing list and commercial invoice. The company passes it on to its customs brokerage to review the accuracy of the documentation, provide and answer any classification questions, and then submit it to the Bureau of Customs. Operations staff will inform the customer that customs clearance is in progress and coordinate the cargo availability for pickup or delivery. For export, after picking up the cargo from the exporter’s premises, goods are delivered to the Bureau of Customs for cargo examination and clearance. Once done, the load is ready for departure via sea and air freight shipment. Dynamic Transport Logistics Solutions Inc also uses Liahona Customs brokerage for import shipments to release the cargo.
Shipment booking
As underlined before, Dynamic Transport Logistics Solutions Inc outsources shipment bookings. In logistics, booking is a request to reserve, for instance, some services provided by different suppliers. Shipment booking demands a booking confirmation that is required to acknowledge a request and confirm shipment details. Dynamic Transport Logistics Solutions Inc outsources agents in China to be its counterparts who will facilitate the canvass of freight charges from the shipping line and arrange the booking. Thus, every time a client has an import, he will inform the company via email and notify its agent to contact the shipper and provide the freight via FCL (Full Container Load), LCL (Loose Container Load), or via air. The company uses Long Sail International for a particular client since their office is in Shanghai and its clients usually ship raw materials from Shanghai port. Besides, Dynamic Transport Logistics Solutions Inc uses D Port Shenzhen for another customer whose shipping goods from Shenzen port. Both china agents provide the company with reasonable rates, services, and longer credit terms. Long Sail gives 60 days credit term, while D Port Shenzen – 45 days.
Performance expectations and reasons to use outsourcing
Dynamic Transport Logistics Solutions Inc always worked with three customs brokerage and two trucking companies to be able to compare their rate and services because its performance expectations are high. The company expects that the forms of outsourcing described will allow it to do the same or more work at a lower cost. It hopes that trucking, customs brokerage, and shipment booking agencies will follow their responsibilities conscientiously. Job has to be done effectively and productively to satisfy clients; otherwise, it can quickly go bankrupt, especially during pandemics. The pandemic has seriously challenged economics worldwide in all aspects, let alone a small freight forwarding and logistics business. That is why it is necessary to rely on outsourcing services. Outsourcing enables organizations to save money and time and provide good quality services to the customers and improve them. Every company should have at least two service providers to divide functions between them and save resources.
Success measurement
Dynamic Transport Logistics Solutions Inc and other companies should use some metrics to know if they are successful. Are there any evaluations metrics, and what is the baseline for them? The baseline is the current economic situation in the company and a current number of their outsourcing providers with whom profitable relationships are stated, for example, with Long Sail and D Port Shenzhen. Metrics to evaluate success are a number of clients, dynamics of income, and a number of accomplished orders. Dynamic Transport Logistics Solutions Inc expects that in the future, it will become a logistics company that will provide its services on a larger scale.