The good news is that the logistics and distribution sector somehow managed to adapt despite the devastating impact of the global pandemic.

Problems That the Logistics Sector Faced

For the majority of operators, the sector has been operating under pressure and in a very challenging environment due to reduced output and demand, which have a strong impact on the global supply chain. In addition to preventing Covid-19 infection onboard, other issues have been the lack or shortages of basic and medical supplies, slower operations and restrictions in ports, staff exhaustion, and crew not being able to board or disembark because of port and airport restrictions.

How the Sector Adapted

With China on the way to economic recovery and demand for exports on the rise by mid-April, economic experts point to an upturn in the logistics and distribution sector. As the pandemic is here to stay for the foreseeable future or at least in 2021, many operators chose to modernize their systems through digitization. With employees working from home, many companies realized how important it is to adopt digital solutions.  Experts also note that increased automation is a positive development that will result in improved transparency and efficiency, reduced risk, lower costs, and reduced carbon dioxide emissions. In fact, digitization was seen as crucial even before the onset of the global pandemic. In case of loss of coverage or signal, operators may not only be unable to ensure crew safety but risk incurring significant losses. Given that seaport operators load and unload huge amounts of cargo on a daily basis, secure and guaranteed connectivity is simply a must.

Other tools that can help improve efficiency include digital solutions for reduced energy consumption, including data collection, machine leaning, and deep learning. Smart maintenance can also be carried out with the help of sensors and condition-based monitoring. Remote inspections have also been proposed as to reduce the costs associated with dispatching staff to conduct onsite inspections. In addition, digitization also involves centralization of staff to avoid the risk of crew exhaustion on board. Operation control centres can be tasked with remote control, data processing, and monitoring.

Experts also stress on the fact that human error not only compromises crew safety but can cost a lot of money, resulting in lost revenue and profits for operators. When email attachments are missing or containers are wrongly labeled, problems occur. When staff in one country is unable to access information in another because of time zones, problems also occur. International freight forwarders can no longer afford human error, especially in light of the ongoing global pandemic and economic crisis. Digitization is increasingly about risk management through improved transparency.

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Here is an overview of all you need to know about the term logistics management and how it is implemented by the European network for transportation:

What is logistics?

As you probably know, logistics is the process which the members of the freight forwarders directory use for the coordination and for moving goods, cargo and other resources, including machinery, food, inventory, materials, liquids, and even people from one location to another.

Logistics was first introduced as a military term and was used to describe the ways in which the military obtained the equipment and supplies as well as its storage and distribution and how they are moved in accordance with the needs of the army.

When it comes to the use of logistics by the international forwarding network as part of the supply chain and business, the term stands for the management of the international freight services and the flow of goods, cargo and things from the production site or point of origin to the end point of consumption. This is done by the list of logistics companies in order to fulfill the demands of the customers and end-clients.

The logistics process includes all stages of the supply chain and production process including the making of the products, their packaging, their storage and distribution, the security measures, as well as the handling of the materials and the information flow.

What types of logistics are there?

The companies from the international freight forwarders association are specialized in various types of logistics services and management, including:

• 3PL – third party logistics
• 4PL – fourth party logistics
• Outbound logistics
• Inbound logistics
• Green logistics
• Reverse logistics
• Construction logistics
• Military logistics
• Digital logistics
• Others

What is logistics management?

Logistics Management as provided by the forwarders throughout Europe has a main goal on focusing on the effective and efficient management of all daily activities which are involved in the supply, distribution, and storage of the finished products and services. This is part of the supply chain management and planning, and includes the control of the efficient flow – forward and reverses of the goods, as well as their storage.

As mentioned previously, all of this occurs between the production and the point of end consumption of a good. The objective of the logistics management provided by the companies from the freight transport association is to allocate the correct amount of input or resources at the right time and also that the product gets to the proper location in the appropriate condition and time frame, and that it is delivered to the right customer.

In order to achieve all of this, the companies from the European logistics network have implemented logistical and supply chain procedures which are effective in reducing the costs as well as for maintaining and increasing the productivity of the manufacturers and customers, and lowering or eliminating the risk of delayed deliveries or other problems with the delivery of the goods to the end customers.

Overall, the idea behind the effective logistics management offered by the members of IFA is to provide better, faster and more accurate services within all stages of the supply chain process.

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Today, the average consumer is relying mainly on their smartphone to purchase all kinds of goods and services – from grocery shopping to making serious investments. Customers expect a growing choice of products, better prices, discounts, and further convenience when it comes to payment and speedy delivery by the national and international freight services.

The European logistics network and businesses dealing with international freight services need to keep in line with the technological advances and the boost of online commerce.

In actual physical retail, the logistics network needs to be efficient, with minimal inventory and effort and at a lower cost. Also, the sales are done at multiple even hundreds physical sales points, which requires the allocation of regional distribution centers in all areas, all with local staff which serves the customers who come to shop.

In online commerce, the retailers and the companies from IFA can rely on one single call center which can be located just about anywhere which handles the customers online or remotely via phone or other communications. The actual storage and distribution centers can be located remotely from any one or more cities.

The members of the freight forwarders association then need to handle the distribution and the small shipments and other types of freight forwarding and deliveries to the home addresses of hundreds, thousands and even million customers.

When redesigning such a network into a digital one, the first step is to work on the customer service. Here are the main factors which the international freight forwarders association needs to keep in mind when doing that:

• Predictability and the size of the orders – with e-commerce the orders are usually smaller and are less predictable than those shipped to actual physical stores
• Destinations – the customers ordering online can be located just about anywhere
• International freight forwarding destinations – these can be quite complicated as compared to traditional shipping for distribution
• The returns logistics management – the return rates for online purchases are much higher than those in traditional retail. The main reason is that the customers are unable to physically see, touch or try the products they are purchasing via the internet

With so many traditional retailers rushing to join the online retail business, many were tempted to promise the customers conditions which have affected their profit and their finances. The offer for free delivery is a perfect example. The same goes with offering rock bottom prices or express delivery which for many retailers has turned into a serious financial burden and even the closing up of business.

Retailers of mass-produced goods in China may offer products at low price and free shipping, but their delivery is usually done via sea transport which is cheaper but takes a much longer time than normal deliveries. This is the price which the customers pay for the low prices and the free shipments.

E-commerce has been particularly successful for goods like electronics, sports apparel or fashion goods. This is good news for the freight forwarders directory as they are relatively easy to dispatch by post, unlike foods and other perishable goods which need refrigeration transport or other specialized transportation.

So for easy to post products, the members of the members of the freight transport association and the logistics companies can organize their networks by organizing:

• Large fulfillment centers with a warehouse where the parcels are picked up for shipping
• Parcel hubs which are close to these centers where the parcels are sorted by postal code
• Local parcel delivery centers – these are for the last mile deliveries to the addresses of the online buyers

The companies from the European logistics network need to take advantage of the fact that in e-commerce all of the interactions are digital, which means it can be collected, stored and analyzed. This can help optimize the logistics services provided by the list of logistics companies for a more profitable and efficient business.

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With the globalization and the rapid growth in international trade, the supply chain and all its members are no longer contained within the borders of one single country. Rather, it includes customers, manufacturers, and vendors from different countries.

Today, China has become a leader in global trade and economy, and with the shifting markets, the global supply chain is becoming more complicated and complex as well. This means that the companies and members of the supply chain need to adapt to these changes and incorporate them into their business.The list of logistics companies from the International Forwarding Association can help their customers and all supply chain members with the difficulties which some inexperienced or ill-equipped companies have operating on an international level and extending their global supply chains. Thanks to the experience of the companies from the European logistics network, now these companies which are new to international trade can successfully expand their businesses and services.

Part of succeeding when entering a new market is understanding the specific cultural differences of each region. Thanks to the fact that the European network for transportation has members in all countries of Europe which are well aware of the local business environment and specifics. The employees of the forwarders throughout Europe experience with dealing with customers and companies from around the world, and can help companies which are interested in entering new and unknown markets to do so successfully.

Here are some of the services which the member companies from IFA can provide to new customers who want to expand their supply chain globally

International freight forwarding

The companies from the freight forwarders network can organize the forwarding of the goods for these companies. They can handle small shipments, complete loads, sea freight in Europe, specialized transportation as well as all kinds of transport services at the best price possible. Thanks to the close cooperation between the logistics companies from the freight transport association the best routes, the cheapest and most efficient transportation can be found for each shipment. In many cases, the companies will decrease the forwarding price even more by combining intermodal transportation services or by using their regular European groupage services. The forwarders will handle all the documentation, the payment, and the carrier selection.

Packing, storage and distribution and contract logistics

The companies from the international freight forwarders network can also provide the appropriate and most cost-effective export packing services to companies which are not familiar with exporting. They can advise them about the best types of packaging to be used, the design, as well as provide pallet shipping and minimize the packaging to maximize the number of goods exported at the lowest price possible.

The companies from the international freight forwarders network also have local warehouses and storage facilities throughout Europe, where they can store and manage the distribution of the goods for the customers too. The international freight forwarders network also offers contract logistics which can help a new customer enter one of the European markets successfully and at a very good price too.

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Entrusting logistic firms with packing

The producers and tradesmen who use the services of freight forwarders, count on them for packing their freights. The logistic firms more and more are turning into multifunctional partners, who also have many other different functions, connected to the freights, except transporting.

Packing activities from International freight forwarders association

The packing activities have their specifics, connected with the choice of materials according to the type of the freights, for ensuring the safety during transporting, for packing for transporting in group containers etc. The services of freight forwarders directory include:

• 3D printing
• Offset printing
• Digital printing
• Packing in a packing in a concrete color
• Laminating
• Packing freights, requiring special temperature regime
• Final packing with folio and protective packings
• Putting the label on the packed consignments

And, other services, according to the type of the freights, transport etc.

The packing services from international freight forwarders are done with materials and consumptives, provided by them. For higher efficacy is used equipment for packing, labeling etc.

Packing is especially important in transport of products from online stores

 Interned based tradesmen are amongst the most regular clients of the groupage transport service. Packing the stocks of online stores must be done in such a way so they can easily be grouped in consignments, without damaging each one of them. Another basic requirement is to be used contemporary marking equipment.

For the protection of the stocks are used only a few suitable packing materials. Additional measurements, which are offered by forwarders throughout Europe include 2D codes, packing that cannot be opened during the transporting and tracing systems for information of the movement of the consignments always.

The variety of stocks, bought from online stores are no longer restricted with books, games and electronic devices. The clients from different European countries can easily buy stocks like flowers, clothes m accessories, even furniture and materials for repairs and improvements at home. For packing of all stocks freight forwarders Europe offer suitable materials as marking elements.

The care for the environment when using packing materials

It’s well known that plastic packings are amongst the most often polluters of the environment. The firms from European network for logistics strive for increasing of the allotment of the recycling materials, used for packing and in the secondary packing of the smallest consignments in Europe-wide groupage transport service use biodegradable materials.

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The optimization of the routes is one of the methods that tend to reduce the freight prices and it the main focus in international freight services. By having in mind the big number of the available means of transportation used by forwarders throughout Еurope the achieved savings become a great advantage even for the logistic companies, themselves.

The factors that should be controlled for delivery optimization

Maximum usage of the number of means of transportationWithin the execution of the logistic freights the means of transportation are of the biggest significance. For the optimization of these means of transportation and for the exploitation of their full capacity it is on mandatory to select those means of transportation that come with the most similar volume to the volume of the goods for the delivery.
In other words, unfilled volume means financial losses.

Availability of the necessary means of transportation

Having at disposal the necessary means of transportation in the parking spaces of the companies from freight forwarders directory is another important factor to have in mind. In these parking spaces a big enough number of means of transportation is supposed to be provided. Yet, they are not enough as other means of transportation that are suitable for specific freights are needed – for instance, refrigerator trucks, trucks for clothing transportation and etc. In the course of time, with the appearance of the newest tendencies for transportation of different goods, rethinking and reorganization of the plans for the support of certain means of transportation become a must. It might get necessary to put into use new specific means of transportation, especially in correspondence to the newest customers’ demand.

The experts from network of freight forwarders follow these new tendencies in the demand and the necessity of the traditional and the innovative means of transportation.

Organization of the means of transportation

The common requirements for achieving cheap freights represent the organization of the means of transportation each company from international freight forwarders network has aiming to manage freights with as shorter as possible stays between the lines. The companies from European network for logistics combine their means of transportation so they can execute all of their orders with no delays. This is how any financial loss is avoided.

Staff organization

Staff work management also defines the efficiency of the freights, as well as the one of the freight loading and discharging. Planning ahead always helps the faster repartition of the staff that works for freight forwarders Europe, as well as the avoidance of delays or impossibility of fast order execution.

Synchronized services by international freight forwarders

The synchronization between European network for logistics services contributes to the maximum shortening of the routes, as well as of the delivery time. This is how the local companies in a certain European country use the most optimized routes in passing the logistic freights by way of the concrete country and then, immediately taken by the logistic lines from the neighbour country. The short frights managed with the execution of the transportation via the shortest possible routes save time and fuel, as well as the number of involved employees from the staff. Thus, the freight price is deducted in two different ways.

Usage of multimodal transportation

The multimodal routes, with the combination of two or more means of transportation have become popular endorsed solutions for time and distance deduction of the freights and respectively, for the common price deduction.

International freight forwarders association mainly combines an automobile with water transportation in order to achieve shorter routes which eventually lead to shorter transportation duration.

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This is not the only challenge which the freight forwarders are facing today.

Here we will take a closer look at the technologies which are being implemented in logistics for faster freight forwarding services, as well as the challenges which the logistics companies are faced with in regard to decreasing the negative impact on the environment form their services.

These are some serious challenges, but finding solutions for them result in the offering of better logistics services both for providing complete load freight forwarding as well as for small shipments.

How does the freight forwarders association respond to the growing expectations of its customers?

In order to meet the expectations of our customers for cheaper and regular shipments, we provide a Europe-wide groupage transport service. Apart from the regular groupage forwarding services which allow for regular and cheap transport, the forwarders throughout Еurope also provide a number of other easy solutions for the customers including door-to-door deliveries, as well as real-time tracking of the shipments which allow the customers to check the status of their shipment at any time.

The new technologies are a challenge which allows for a better efficiency

The new technologies being implemented in logistics and in other spheres allow for a much faster and reliable communication among the forwarders throughout Europe. Apart from that, the new technologies also help improve the storage organization, as well as for providing precise data in regard to the stock of cargo and goods for each customer and regarding their safety.

The member companies of IFA use new technologies in their vehicles which allow for easy tracking and for ensuring that appropriate conditions are provided for the fast moving goods and cargo.

How are faster freight forwarding services achieved

The speed of the shipments depends on the type of transport used. In order to satisfy the requirements of their customers, the companies providing international freight services are looking for additional ways to reduce the shipping terms and times. This is done by faster order processing as well as by providing intermodal routes. Intermodal routes usually combine several types of transport, usually road and water transport for minimizing the shipment time.

The close cooperation between the companies providing international freight forwarding allows for combining shipments in order to achieve shorter delivery terms. Each company knows the routes in its own country very well, and knows where there are repair works or other possible obstacles which can slow down the transport. Instead they choose the best route which will ensure than a minimal amount of time is lost during the transport.

The principles of green logistics

The preservation of the environment is a challenge and an obligation both for the environment as well as for us humans. The companies from the international freight forwarders association use packaging which are reusable, as well as pallets and containers. Apart from that, the shortened routes lead to the reduction of the fuel used and thus the harmful emissions from the burning of fossil fuel. Another principle way for reducing the harmful effect on the environment is the use of less packaging materials for the groupage transport service. For these, thinner packaging is used for the separate units travelling together, which are combine together on pallets. This helps reduce the packaging used and thus the waste resulting from unpacking of the goods or cargo upon delivery.

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The opportunities for using 3D printers for manufacturing various products has led to an increase of the demand for such technology

The sales of 3D printers are rapidly growing. The number of these printers sold in 2012 was more than the entire volume of sales for the 25 years before that. The reason for this rise, is the convenience of these printers which can produce various objects and items with minimum human involvement.

The impact of 3D printing for the activities of the European Logistics Network

The printing of products based on digital models from materials such as: plastic, ceramics, metal and others allows for the consumers to order the desired products from destinations closer to the main production centre of the product.  This allows the production of such products to move closer to the end market and consumer.

The second main advantage of the use of 3D printing is the possibility of customisation of the orders. This allows the customers not only to purchase the desired product but to order it with specific modifications too.

Changes which will occur in the activities of the international freight services

The changes in the production will be significant:

• With the shifting of the production sites closer to the end consumer, the need for storages will decrease. The orders will be performed faster.
• With the lessened distances between the production and the consumer, the routes for small shipments will become shorter too.
• There will be a growing demand for 3D shops in which the member companies of the European network for transportation will offer deliveries to the customers who ordered the goods.
• The demand for logistics services will decrease to a large extent
• The companies in the freight forwarding network which offer more added value will be in a more favourable position
• With the development of the new technologies which will lower the cost of various goods in mass copies and single copies, the need for groupage transport will grow
• The customers will want not only to be able to order customised products but also to receive them in the time requested by them which will increase the demand for express transport services
• With the massive deployment of 3D technologies, the freight forwarders in Europe can turn into manufacturers
• The companies in the International forwarders network need to react quickly to the changes in the market, when a demand for certain new goods appears in a given area
• The need for logistics of materials will prevail over the forwarding of ready products
• The need of logistics services for the delivery of spare parts will grow significantly. Until now, the majority of spare parts were kept in storage for year. Now with the new 3D technologies, the necessary spare parts can be easily printed out

How freight forwarders Europe must plan their future activities

First of all, the logistics companies should reduce their fleets.

The supply chains must be very flexible – one of the future objectives for logistic companies.

Also, the need of specialisation per sector will decrease.

The logistics companies must work in partnership with the suppliers.

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