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First-rate forwarders

By Staff -- Logistics Management, 8/1/2004

As middlemen in the supply chain, freight forwarders have to provide a helping hand to shippers each and every day. "I look for a good customer representative," said one survey respondent, when asked to define first-class service from freight forwarders. "I want someone who will take care of the problem without creating a big headache for us."

That respondent was hardly alone in describing a first-rate freight forwarder as a problem solver. "They have to come up with viable solutions, timely quotes, knowledge of the industry, and shipping requirements for dangerous goods," wrote another shipper.

Others view flexibility as the key attribute that makes a freight forwarder stand out from its competitors. "If there is a problem getting the package to its point of delivery, [outstanding service is] how the company works to help us get it there," said another reader.

For many shippers, being a top-quality freight forwarder requires maintaining a global presence. Those that can handle both domestic and international shipments pull ahead of the pack, said one respondent.

Even when freight forwarders have a worldwide presence, some shippers still want that feeling of having a local connection. One reader looks for a vendor with a "local office for pick up and assistance…that never forgets to pick up (freight)."

Another wrote that a "friendly personal relationship" was important. That reader wasn't alone in placing a premium on personnel. At least one other respondent prefers to do business with a forwarder whose entire staff is "honest and pleasant."

Survey respondents, in fact, stressed over and over the importance of integrity in business dealings. One distribution manager noted that "honesty and integrity in customer relationships and pricing structure" is most important.

This year 12 airfreight forwarders rated high marks from shippers for their service quality. Six of those companies were repeat winners from last year: UPS SonicAir, Lynden Air Freight, AIT Worldwide Logistics, Associated Global Systems, Nippon Express USA, and Expeditors International. Joining the ranks of gold medalists were Kintetsu World Express, Exel, DHL Danzas Air & Ocean, BAX Global, BDP International, and Team Worldwide (Team Air Express).

Overall marks for freight forwarders continue to climb. Last year, the industry as a whole hit a record composite weighted score of 32.64. This year, forwarders as a group beat that milestone, reaching an even higher mark of 33.42. Scores increased in three categories. Value rose from 7.25 to 7.56; information technology jumped from 4.15 to 4.25; and equipment and operations soared from 3.45 to 4.21. Nevertheless, scores slipped for on-time performance, dropping from 10.64 to 10.26, and for customer service, down slightly from 7.16 to 7.14.

Freight Forwarders
On-time PerformanceValueInformation TechnologyCustomer ServiceEquipment & OperationsWeighted Score
UPS SonicAir11.107.934.807.614.6436.08
Kintetsu World Express10.858.504.677.544.2835.84
Lynden Air Freight11.318.254.317.474.3835.72
AIT Worldwide Logistics10.717.644.367.794.4034.91
Associated Global Systems10.567.704.137.774.1834.34
Nippon Express USA10.278.404.147.314.1234.24
Exel10.488.334.106.864.2834.04
DHL Danzas Air & Ocean10.397.584.467.194.3733.98
BAX Global10.067.504.317.434.3133.61
BDP International10.767.643.827.204.1533.56
Team Worldwide (Team Air Express)10.498.353.697.143.8033.47
Expeditors International10.497.614.336.804.2333.47
AVERAGE10.267.564.257.144.2133.42
All scores are weighted. Weighted scores are determined by multiplying the average raw scores by the average importance of each attribute (1 = least important; 5 = most important). To find the attributed weights for this category, see the introduction to the Quest for Quality report.
Source: Logistics Management, Reed Research Group

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