Month: October 2023

When to Use Each Type of Freight Service: A Detailed Comparison

When to Use Each Type of Freight Service: A Detailed Comparison

There are a lot of transportation methods to get your cargo across long distances. So, in this article, we’ll discuss when to use each type of freight service. Our goal is to help you find the right mode of transportation to move your cargo in the most efficient way possible. 

Having the best freight services is a business asset

Freight services are the backbone of global trade, enabling businesses to move goods over vast distances. It helps businesses reach various parts of the world without establishing a home base in every country. This opens many opportunities for businesses to grow by tapping into new markets without a heavy upfront investment. 

When it comes to choosing a freight service, several factors need to be considered, including speed, cost, capacity, and environmental impact. In this article, we’ll examine four key freight services: air freight, sea freight, land freight, and door-to-door delivery, to help you make the right decision for your business.

A head-to-head comparison of the different freight services

An airplane getting loaded with cargo

Air Freight

Air freight is the process of transporting goods via air carriers, typically through chartered or commercial airlines. This mode of transportation is gaining popularity primarily because of its speed and convenience, especially for smaller batches of shipments. Nowadays, you can book an air freight service through different logistics companies and even directly with airlines. 

When to Use Air Freight

Air cargo is best used when time is of the essence. That’s because air freight offers the fastest shipping times, making it ideal for high-value goods, perishable items, or goods with a short shelf life.

For example, you are distributing freshly caught premium tuna from the province. Then, it’s ideal for your product to get to your clients in Metro Manila to receive your products almost immediately after you catch it. The best way to do this is by packing your catch in an insulated container with ice and then sending it on the first flight out. 

Benefits of Using Air Freight

Speed

Air freight offers unmatched speed. With most transit times ranging from days to weeks, air cargo can deliver your goods in a matter of hours. 

Reliability

Airlines tend to have highly reliable and consistent flight schedules and can also offer multiple flights per day. This ensures that you can ship out your goods within the day, reducing the risk of delays.

Drawbacks of Air Cargo

Cost

Air freight can be significantly more expensive than other modes of transport, largely due to fuel and maintenance costs.

Capacity

Planes have limited space, meaning you may be restricted in terms of volume or weight of goods you can send. This makes air cargo unideal for big shipments. 

A cargo ship delivering cargoes across the ocean.

Sea Freight

Sea freight involves transporting goods via cargo ships across the ocean or through inland waterways. Sea cargo is one of the oldest and most used transportation methods because of its ability to move massive amounts of cargo without a hefty price tag. Moreover, it also has the ability to deliver goods long distance (inter-continent). 

This makes it the preferred shipping method of businesses that ship vast amounts of products across the world. 

When to Use

Sea freight is ideal for bulk shipments or large volumes of goods. It’s especially suited for heavy or bulky items that would be too expensive to send by air. Most of the time, it’s used by companies who send out many product quantities per shipment. 

For instance: laptop manufacturers tend to use sea cargo to send hundreds of thousands of units from their factories in Asia to their distributors across America. This is because it’s a lot cheaper to ship bulk items across long distances over sea than by air. 

Benefits of Sea Freight

Cost-Effective

Sea freight is often the most economical way to ship large volumes of goods. This is because container ships can carry thousands of container vans from different companies in one trip. This allows shipping companies to spread out the costs of transporting the goods. 

Capacity 

Cargo ships can carry enormous quantities of goods, making sea freight ideal for high-volume shipments. Since container ships are massive in sizes, you can virtually ship any product using sea freight. This makes it the preferred method of companies who ship cars, trucks, and heavy equipment and machineries.

Drawbacks

Speed

Sea freight can be slow, with transit times ranging from a few weeks to a few months. That’s why proper logistics timing is crucial especially when shipping seasonal products. 

Reliability

Delays can occur due to weather conditions, port congestion, or customs issues. Based on current events, there have been a lot of issues with port congestion across the world. This event can cause massive delays which lead to product shortages. 

A delivery truck traveling to delivery parcels.

Land Freight

Land freight, also known as road or rail freight, involves transporting goods over land, usually by truck or train. This method of transportation is usually used for shorter distances. Ideally, within the island/country. 

When to Use Land Freight

Land freight is often used for domestic transportation or short to medium-distance international trade, particularly when goods must be transported across borders or to areas not served by sea or air freight.

Usually, land freight is used to complete certain shipping projects. 

For instance, a manufacturing company in Malaysia ships its products to the Philippines by sea. Then, to complete the delivery process, they use delivery trucks to send the products from the port to the respective warehouses of their clients. 

Benefits of Land Freight 

Versatility

Land freight can handle almost all types of goods, including perishables, hazardous materials, and bulky items.

Coverage

Unlike the two previous modes of transportation, land freight has the ability to deliver goods to more specific locations like warehouses, offices, and even mountain regions. 

Door-to-Door Service

Road freight can deliver goods directly from the sender to the recipient, providing greater convenience.

Drawbacks of Land Freight

Speed 

While faster than sea freight, land freight is typically slower than air freight.

Environmental Impact

Trucks, in particular, can produce significant greenhouse gas emissions.

Distance

Since trucks can only travel on places with roads and trains on places with rails, land freight is not ideal for long-haul freight deliveries. But if need be, trucks can be placed in a Roll-on Roll-off (RORO) boat to get across islands. 

A deliveryman delivering a door-to-door package to a customer.

Door-to-Door Delivery

Door-to-door delivery is a service where goods are picked up from the sender’s location and delivered directly to the recipient’s location. It’s also known as point-to-point delivery. This mode of transportation has gained popularity in recent years due to the rise of e-commerce shopping.  

When to Use Door-to-Door Delivery

Door-to-door delivery is ideal when convenience and ease of use are priorities. It’s particularly suitable for e-commerce businesses, small parcel deliveries, or when the sender and recipient lack the facilities to load or unload goods. This is most prevalent with food delivery services as well. 

An ideal scenario for door-to-door delivery is when you need to send products within the city/region. For example, if you’re a flower shop in Makati, you can use door-to-door delivery to send bouquets to your customers’ homes within the day. 

Benefits of Door-to-Door Delivery

Convenience 

Door-to-door delivery simplifies the shipping process, eliminating the need for senders or recipients to transport goods to or from ports or depots.

Complete Service

The freight company handles the entire process, including customs clearance, reducing the administrative burden on the sender.

Timeliness

Door-to-door deliveries for short distances can be completed in a couple of minutes or hours at the maximum. 

Drawbacks of Door-to-Door Delivery

Cost

Door-to-door delivery can be more expensive than other options due to the additional services provided. This is because you typically need to book one courier per delivery. But some logistics companies offer bulk delivery options. 

Distance

Most door-to-door delivery services tend to only cover short distances. Doing longer distances like provincial door to doors would incur higher costs than other options. 

Choosing when to use each type of freight service depends mainly on your specific needs and the nature of the goods you’re shipping. Consider factors such as speed, cost, capacity, and convenience to make the best choice for your business. We hope this guide helped you understand what freight service to use for each situation. 

Book Your CaPEx Air Freight Shipment Today!

Need a trusted air freight in the Philippines? Contact CaPEx today to get a quote and book your shipment!

Call us now: 0919 056 6888 | (02) 8396-8888

Experience fast, reliable, and secure air cargo shipping with CaPEx!

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10 Advantages of Outsourcing Warehousing and Storage

10 Advantages of Outsourcing Warehousing and Storage

There’s a plethora of advantages of outsourcing warehousing and storage. That’s why a lot of small and medium businesses are now opting to venture into working with third-party warehousing and storage companies instead of investing in their own facility. In this article, we’ll show you why outsourcing is the right strategy for your business. 

A valuable partner in managing your business’s inventory

In the dynamic world of business, warehousing and storage play a vital role in maintaining efficiency and meeting customer demands. 

Warehousing refers to the process of storing goods in a large, organized, and managed space – a warehouse – before they are dispatched to the end consumer. Storage, on the other hand, involves preserving goods securely until they are needed. Both are integral to managing inventory, ensuring timely delivery, and keeping a business running smoothly.

For many businesses, managing their own warehousing and storage can be a daunting and resource-intensive task. This is where third-party warehousing and storage companies come into play. These companies provide businesses with the necessary infrastructure, expertise, and resources to manage their inventory effectively without the need to invest in their own warehousing facilities or personnel.

Take, for example, a fast-growing company that experiences sudden spikes in demand. If this company tries to manage its own warehousing and storage, it might struggle to cope with the rapid changes in inventory levels, leading to issues like stock outs or overstocking. But by partnering with a third-party warehousing and storage company, it can seamlessly scale its operations up or down to match the fluctuating demand, ensuring a consistent, reliable service for its customers.

Business advantages of outsourcing warehousing and storage requirements

A warehouse manager keeping track of stored items in the warehouse.

#1: Cost-Efficiency

Operating your own warehouse can be a significant financial burden. Costs can include purchasing or renting a suitable space, acquiring and maintaining necessary equipment, hiring and training staff, paying for utilities, and covering insurance premiums.

A 3P warehousing company removes these burdens. Rather than shouldering these fixed costs, you pay only for the space and services you need at a given time. This flexibility can result in substantial cost savings, making your business more competitive and profitable.

#2: Flexibility and Scalability

Business demands can fluctuate seasonally or even day by day. During peak periods, you may need more space to accommodate increased inventory, whereas during slower times, you may find yourself paying for unused space.

Another advantages of outsourcing warehousing and storage is flexible and scalable solutions. These providers have the capacity to accommodate your business as it grows or shrinks, meaning you’re never wasting money on unused space or scrambling for additional storage during busy periods.

#3: Access to Advanced Technology

Today’s warehousing industry relies on sophisticated technology, including warehouse management systems (WMS), automated picking and packing solutions, and advanced tracking systems. However, these technologies require significant investment and expertise to implement.

When you partner with a 3P warehousing company, you gain access to these cutting-edge technologies without the need for capital expenditure or the hassle of managing the technology yourself. This can greatly improve your inventory management and operational efficiency.

#4: Expertise and Experience

Warehousing involves many complex processes, from inventory management and order fulfillment to quality control and compliance with safety regulations. It requires a deep understanding of logistics and considerable experience to manage efficiently.

3P companies are experts in these areas. They have experienced teams who handle these processes daily, ensuring your goods are stored correctly, orders are fulfilled accurately and promptly, and all operations comply with relevant regulations.

A man working on his laptop and iPad

#5: Improved Focus on Core Business

Managing a warehouse requires significant time and resources, which can distract from your core business operations. Tasks such as hiring and training warehouse staff, dealing with equipment maintenance, and managing inventory can consume valuable resources.

By outsourcing your warehousing needs to a 3P company, you can reallocate those resources and time to focus on your core business functions. This allows you to prioritize growth strategies, product development, marketing, and customer service.

#6: Better Inventory Management

Effective inventory management is crucial to avoid costly stockouts or overstocking. However, executing properly requires meticulous tracking, regular audits, and sophisticated systems.

3P warehousing companies typically offer comprehensive inventory management services. They employ advanced WMS to track and manage inventory in real-time, conduct regular audits to verify the accuracy, and provide detailed inventory reports, ensuring you always have an accurate picture of your stock levels.

#7: Enhanced Delivery Times

Fast and reliable delivery is a key component of customer satisfaction. But if your warehouse is located far from your customer base, or if you don’t have the resources to fulfill orders promptly, delivery times can suffer.

3P warehousing companies often operate multiple distribution centers strategically across different regions or countries. This means your products can be stored closer to your customers, leading to faster delivery times, reduced shipping costs, and, ultimately, happier customers.

#8: Risk Reduction

Operating your own warehouse exposes your business to several risks, including theft, damage to goods, fire, or natural disasters. Mitigating these risks requires extensive security measures, robust safety protocols, and comprehensive insurance coverage.

3P warehousing companies are well-versed in risk management. They have strict security measures in place, including surveillance cameras, controlled access systems, and comprehensive insurance policies to cover any potential losses. This reduces your risk exposure and provides peace of mind.

#9: Custom Services

Each business has unique warehousing and logistics needs, depending on the nature of its products, business model, and customer expectations.

Many 3P warehousing companies offer a range of specialized services that can be tailored to your specific needs. These might include kitting and assembly, reverse logistics, climate-controlled storage, or specialized packaging. This flexibility allows you to offer better service to your customers and can give you a competitive edge.

Plants growing out of the earth.

#10: Reduced Environmental Impact

As businesses increasingly seek to reduce their environmental footprint, shared warehousing offers a greener alternative to operating a private warehouse.

By sharing space and resources with other businesses in a 3P warehouse, you help reduce energy consumption, lower greenhouse gas emissions, and minimize waste. This benefits the planet and can enhance your company’s reputation as an environmentally responsible business.

Working with a 3P warehousing and storage company provides a host of benefits. Ultimately, it’s about managing resources effectively and leveraging available technologies without investing heavily in upfront costs. By capitalizing on the various expertise and resources of these companies, you can better focus on your core business functions, deliver superior service to your customers, and drive your business growth.

Book Your CaPEx Air Freight Shipment Today!

Need a trusted air freight in the Philippines? Contact CaPEx today to get a quote and book your shipment!

Call us now: 0919 056 6888 | (02) 8396-8888

Experience fast, reliable, and secure air cargo shipping with CaPEx!

Send Us A Message

Benefits of Door-to-Door Delivery for Businesses in the Philippines​

Benefits of Door-to-Door Delivery for Businesses in the Philippines

There are various benefits to using door-to-door delivery to deliver products straight to consumers. This is why many businesses are adding a direct-to-consumer aspect to their business model. In this article, we’ll show you why you should consider adding door-to-door delivery to your services. 

Opportunities are a knock away with door-to-door delivery

As the name suggests, door-to-door delivery refers to a service where goods are picked up from a specific location and delivered directly to the recipient’s doorstep. This service is becoming increasingly popular among businesses and consumers alike due to its speed, convenience, and reliability.

To make the process clearer, let’s dive through a business example. 

Trinkets Unlimited is a small figurine store that sells handmade crafts to customers all over the Philippines. Initially, customers from different provinces must pick up their orders in logistics offices. This process was very inconvenient for Trinkets Unlimited’s customers and caused low order and reorder rates. 

This pushed them to switch to door-to-door delivery, where the products will be picked up in their store and delivered directly to their customer’s house. Their clients appreciated the convenience of ordering, encouraging them to order more often. 

Door-to-door delivery allows businesses to ensure a seamless delivery process, enhancing customer satisfaction and fostering customer loyalty.

The benefits of using door-to-door delivery

A woman receiving her door-to-door delivery

More convenient for you and your customers

Arguably, the biggest benefit of door-to-door delivery is the convenience it offers. Businesses can have their products picked up from their location and delivered directly to the customer’s doorstep, eliminating the need for multiple handling and transfers.

This also makes it easier for customers since they won’t need to leave their homes to pick up the products. 

Making the delivery process easy and seamless can encourage customers to buy more frequently since acquiring the product requires less effort. 

Door-to-door delivery improves customer satisfaction

Point-to-point delivery can significantly enhance customer satisfaction. That’s because customers appreciate the fact that their purchases are delivered right to their doorstep. This convenience often increases customer satisfaction, loyalty, and referrals.

Saves you and your customers a lot of time

Since logistics companies pick up your products in your store, you won’t have to go out and bring them to pick-up/send off hubs. This saves you a lot of time, money, and effort. 

Moreover, door-to-door also eliminates the need for customers to travel to a specific location to pick up their goods. 

This makes door-to-door delivery a valuable service that can save considerable time. This particularly benefits businesses whose customers lead busy lives and value their time.

A map with various pins of different door-to-door delivery locations.

Reach more potential customers

Door-to-door delivery allows businesses to reach more people. Businesses can reach customers who are located in areas that may be difficult to reach otherwise, thanks to door to door services. 

This can help businesses expand their customer base and increase sales.

Door-to-door delivery is cost-effective

While there might be an added cost associated with door-to-door delivery, it can actually prove to be cost-effective in the long run. This is because it can lead to increased sales, repeat business, and improved customer loyalty, all of which can positively impact a business’s bottom line.

Track your packages in real-time

Door-to-door delivery services often come with tracking capabilities. This allows businesses and their customers to monitor the progress of the delivery, providing peace of mind and enhancing the customer experience.

A door-to-door rider giving a thumbs up while doing delivery routes.

Flexibility

Door-to-door delivery offers flexibility. Businesses can schedule pickups and deliveries according to their needs, making it easier to manage their operations.

This flexibility also extends to clients since they can ask businesses to work around their available schedule. 

There are many benefits to using door-to-door delivery.But the key benefit that stands out is convenience. The ease of having goods picked up from your location and delivered directly to the customer’s doorstep simplifies the delivery process, making it a highly attractive option for businesses. Plus, it’s also a good way to build customer satisfaction and delight. 

By opting for door-to-door delivery, businesses can streamline their operations, improve customer satisfaction, and ultimately drive business growth. In today’s fast-paced world, where convenience is highly valued, door-to-door delivery has emerged as a service that businesses can’t afford to ignore.

Book Your CaPEx Air Freight Shipment Today!

Need a trusted air freight in the Philippines? Contact CaPEx today to get a quote and book your shipment!

Call us now: 0919 056 6888 | (02) 8396-8888

Experience fast, reliable, and secure air cargo shipping with CaPEx!

Send Us A Message