What is a Shipping Company, and Why Do You Need One?

A shipping company is a firm that facilitates seamless and professional cargo transfer between various destinations. This enterprise ensures that goods arrive at their destinations promptly and safely. Besides, it performs other essential duties that facilitate local and international trade.

Our post discusses why you need such a partner in your business. Stay on this page to understand why and how partnering with a shipper benefits your business.

Functions of a Shipping Company

A professional full-service shipping firm wears many hats that fill gaps and hold the entire supply chain. Mostly, a professional logistics company connects raw material suppliers to manufacturers or manufacturers to customers. For instance, many offer transportation and warehousing services. They also coordinate inbound freight, fulfill orders, outbound shipping, and delivery. Below are the core functions a shipping company performs in detail.

1. Shipping Services

A professional shipping firm facilitates different shipping services. They perform intermodal services across oceans, roads, railroads, and air.

2. Outbound Processes

A professional shipper facilitates processes that ensure automatic product shipping based on prearranged agreements or forecasts. The company picks and moves these goods to a staging area for loading.

A shipping company’s shipping strategies vary depending on product type. Some companies have automatic retrieval systems that bring pallets from designated slots using various conveyors to their staging areas.

In other circumstances, a firm may manually pick up the goods at its warehouse. For instance, it may pick the products based on their orders, zones, or batches, whichever is most appropriate. Next, it packs, checks, and loads the goods safely to ensure timely delivery.

3. Inbound Processes

Inbound processes require accurate and quick inventory handling. Any errors in recording incoming goods can create serious problems in a shipping company’s warehouse. Therefore, tech-savvy and forward-thinking firms like OCT utilize high-tech Warehouse Management Systems (WMS) to minimize possible receiving errors.

This technology assists a shipper in making accurate inbound receipts that show various details. These details include manufacturing dates, serial numbers, purchase tracking orders, and expiration dates. It sometimes sends pre-delivery notifications ahead of shipments to facilitate the receiving process by reducing manual entries upon goods’ arrival.

4. Warehouse Fulfillment

A shipping company may also perform warehouse fulfillment by managing raw materials and finished product storage at their sites instead of manufacturers’ or retailers’ premises. This way, they help manufacturers and retailers optimize their storage space.

Such a company has trained warehouse professionals who manage inventories and maintain turnover rates for individual products based on forecasts. Upon receiving and warehousing products in their designated locations, they prepare them for picking and loading to their final customer destinations.

5. Digital Warehousing

Computerization has enhanced how shipping companies deliver their services. They employ sophisticated management systems for tracking incoming inventory, selecting slotting locations, and maintaining FIFO control. These high-tech systems also identify picking sites and stage goods for loading.

They also leverage e-management systems, electronic logging gadgets, and scanners for real-time recording. This way, they can efficiently track every item’s location to protect them against damage and loss. They also rotate products as necessary.

A forward-looking shipping firm like OCT tailors its in-house functions to suit its customer’s unique needs and requirements. Its computerized warehouse system generates instant reports, returns goods, and automates stock rotation. The system provides quick real-time data, fast access, and compliance labelling.

digital warehousing

Types of Freight Logistics a Shipping Company Facilitates

A full-service shipping company handles different types of freight logistics. Here are the four main logistics types it conducts and promotes.

1. Air Shipments

A full-service shipper facilitates air freight. This is the fastest shipping mode and the most expensive. It’s the best choice for businesses dealing in sensitive and perishable goods.

2. Ocean Shipments

Ocean shipment is the largest form of shipping facilitating international trade. Ships carry goods via the high seas. It’s the most suitable shipping method for businesses transporting or ordering heavy goods. Goods are stored in lockable containers to promote their safety. A professional shipper facilitates goods dispatch, customs and duty clearance, and door-to-door cargo delivery.

3. Rail Shipments

A shipping firm also facilitates rail shipment. This method is perfect for bulky goods in transit. The company ensures that the goods are safely and carefully moved to specific carriers and dropped at their desired destinations.

4. Road Shipments

Lastly, a shipper facilitates road shipment. This moving option facilitates local and international trade. Goods transported by road need movement documentation between destinations. A shipper ensures these items arrive at their desired destinations and delivers them to customers’ doorsteps when necessary.

road shipments

Benefits of Working with a Shipping Company

Working with a shipping company has many benefits. Here are some reasons you need to partner with a full-service shipper.

1. Send Packages to More Destinations

A shipping company lets you enjoy more shipping destinations. Many online retailers ship to limited and selected areas. Moreover, many ship light items. This limitation means a business dealing in bulk imports to remote areas may not get the best service. Fortunately, a shipping company frees you from these inhibitions, allowing you to ship or receive more goods to and from more destinations than ever.

2. Convenience

You shouldn’t waste your prime business working hours stressing yourself with shipment details when a dedicated shipper can do it. A shipping company saves you the hassles of finding suitable packaging materials and establishing package weights or dimensions. Working with a shipper saves you all these tiring tasks, letting you focus on your core business duties. Eventually, a shipper saves you time, money, and energy to be more productive in your business.

3. Cost Effectiveness

Working with a shipping company is a cost-effective option. A shipper saves you money because they book spaces in bulk at a cheaper, discounted rate. Additionally, they have legally binding agreements with transporters that save them sudden price changes that could cause you losses. So, you send or receive your goods assured of stable and low shipping rates.

cost effectiveness

Contact Us for All Your Shipping Needs

Working with a shipping company is a smart necessity that helps every modern business remain afloat and profitable. What are your shipping needs in and around Ontario? Don’t carry your shipping burdens when we are here to relieve you in the most cost-effective manner. Go ahead and contact us today for a free consultation and quote.

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