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SIZE MATTERS
May 21, 2007
Rosalind McLymont
A key issue for smaller exporters is whether to go with a big, midsize or small forwarder.
Elaine Rosendorf, co-owner of Amber Worldwide Logistics Inc., in Jamaica, N.Y., said a small company such as hers has “a better handle than the big boys on what’s going on.”
Multinational companies such as General Motors Corp. have in-house staff to handle export matters and large, and seasoned exporters, even small ones, know what is required, she said. “But the guy that goes to a tradeshow where somebody buys his merchandise — he doesn’t have a clue what he’s supposed to do to make the export,” she said.
The big freight forwarders are not geared up to serve such clients, she said. Instead, “they’re geared up for what I call production line exports. If they have to take anything out of the line that’s smaller, they’re not geared up to do it,” she said.
Similarly, the big boys do not necessarily have better rates than the small players, Rosendorf said. “I found that to be true many times on airfreight. I may have a better relationship with the sales representative and can get a better rate than, say, Kuehne & Nagle,” she said.
The “big boys” counter with the strength of their global reach and bargaining power, as well as the array of services they provide, even to the small exporter.
Joe Bento, president and chief marketing officer of EGL Inc., said it provides shippers, regardless of size or industry segment, with complete global export services and a worldwide network of facilities and gateway operations. EGL’s size and shipment volume allow it to leverage its buying power for air and ocean transportation services. “Web-enabled visibility and reporting capabilities are available for customers throughout the export process,” he said.
The choice between big or small boils down to personal preference, according to Brandon Fried, executive director of the Airforwarders Association.
“Usually, small and medium-sized companies can establish rapport with customers on a much more personalized basis, which results in increased flexibility and probably increased customer service. That’s not to say larger companies can’t be the same. It’s just that their size at times makes them a bit inflexible,” Fried said.
“Large companies tend to have greater financial resources and that’s usually seen in worldwide presence, extensive technology and maybe increased capability in certain intricate areas. But small companies tend to be focused, niche players and specialized in specific import and export areas. That might be more pertinent,” he said.
Bento, however, insists that EGL can provide personalized service, too. “We work with our customers to understand their businesses and to develop personalized solutions. Using our complete suite of services to create a strategy, we believe we provide a competitive advantage for customers,” he said.
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