Carriers can provide more for shippers in long run
When you’re a smaller carrier, it can be tempting to try to expand your services by hiring employees and opening offices in other cities. But if you’re not careful, this could mean over-investing in a project that might or might not pan out. It’s also possible that the market will change before your expansion is finished—which means that you’ll have spent money on something that no longer makes sense for your business.
So what should you do instead? One option is to partner with an offshore partner who can help you grow your business without putting so much of your own capital at risk. This can help ensure that you have enough resources available when it comes time for deployment while also giving you access to new markets that are already established elsewhere in the world.
This allows carriers to benefit from economies of scale that other shippers may not have access to. Finally, larger carriers will have lower operating costs due to economies of scale—they can reduce their costs by working with one partner rather than having different resources to handle every small job separately.
For many shippers, the biggest problem with their supply chain is that the pieces are small enough to be difficult to manage.
For example, if you’re shipping heavy equipment or other large items, it’s not uncommon for carriers to also provide freight insurance or even handle customs clearance. This frees up valuable resources for other tasks and allows them to focus on their core competencies.
As a result, we’ve seen a shift away from having a carrier as one point of contact, where you have to deal with everything yourself—to having one point of contact that does everything for you. This allows shippers to work during the day and rest at night knowing that their goods will be delivered as promised.