Logistics networks: everything you need to know about them
In this article you will get:
If you work at a freight forwarder, you probably are a member of a logistics network, or are looking for the possibilities to understand how it works, right? Don’t worry, we are going to give you a complete overview of the logistics networks sector.
What is a logistics network?
After all, what is a logistics network? Logistics networks are groups that gather independent freight forwarder companies from different countries in order to provide an environment to build partnerships and exchange business.
To be a part of a logistics network the forwarder company pays an annual membership fee that goes around USD1.300,00 and USD4.000,00. The payment will give your freight forwarder company access to the list of forwarder partners selected by the logistics network.
There are many logistics networks in the world, so you can choose the best suited for you. Usually, freight forwarders are part of more than one network, and that is to have a larger option of partners to make business with. Some logistics networks have a limit of companies per country, and other ones don’t have any kind of limit.
How to choose a logistics network to be part of?
Knowing that there are many options of logistics network service providers, choosing one to be a part of can be challenging. In order to do so you should consider:
- Your forwarder’s main business goal
Keep in mind your forwarder’s objectives, and draw a line of how you think a logistics network can help you get there. Start by listing your business priorities like: making more qualified partnerships; increase business exchanges in a specific country or region; expand the operational area, etc.
- Analyze the logistics networks
Once you’ve set your forwarder’s goal it’s time to analyze the logistics networks available. Choose the ones that are most aligned with your objectives and make research about them.
If possible ask for feedback from the current members of the network you choose, get in touch with the network’s team to check how much is the logistics network membership fee, how much business the members are generating, what benefits they offer, etc. This will help you make a better decision.
- Joining more than one logistics network
As we mentioned before, being part of more than one logistics network group is a great opportunity for freight forwarders to increase their business, especially if you choose any logistics network that has a limit of companies per country. If you choose to do so try to look for networks that offer distinct characteristics.
Many forwarders think that being a WCA network member is enough because it is the major logistics network in the industry, but that is not a rule. Although it offers a big list of forwarders, it may not offer what you are looking for.
Comparing logistics network
Now that you know how to choose a logistics network, it’s time to know how to compare them. To do so we gathered 4 network logistics service providers as an example.
Network of independent freight forwarders with a total of 9.553 members in 194 countries.
Benefits of joining WCA:
- global reach;
- networking and events;
- financial protection;
- marketing and promotion, that helps to promote your freight forwarder company to other WCA members;
- PartnerPay, a system developed by WCA where members don’t pay any fee while doing transactions;
- world insurance service;
- Courier program.
- X2 Logistics Network:
Logistics Network that counts with 534 members in 133 countries.
Benefits of joining X2 Logistics Network:
- trusted and professional forwarder partners;
- financial protection;
- limited membership per market;
- annual conference;
- 24/7 customer service support;
- quote system;
- tool to increase member interaction;
An international freight forwarder network with 400 members in more than 95 countries.
Benefits of joining Pangea:
- a discount of 25 dollars for each shipment that you make on the platform;
- online tools for carrying out and following up shipments;
- professional marketing resources;
- a limited number of members per country;
- financial insurance;
- annual meeting.
Global logistics network that counts with 5000 members in more than 200 countries.
Benefits of joining JCTrans:
- marketing promotion;
- financial protection;
- credit system;
- annual conference.
How to get into a logistics network?
Getting into a logistics network takes time and effort. At first, you must fill out a form about your company. Usually, it’s asked for:
- the forwarder’s company name;
- the company’s website;
- the forwarder’s address;
- a company profile description;
- the year established;
- the name of the person applying to it;
- the position of this person in the forwarder company;
- a phone and email for contact.
After all of this information is sent to the network they will analyze if your freight forwarder has the necessary requirements to get into their network. Once your freight forwarder is approved your company’s information is shared with the other forwarders in the network database.
Do all logistics networks charge for a membership?
Yes, there is no free membership logistics network. To enter any network you will need to make an annual investment to enjoy the benefits that they offer. As we mentioned before the logistics network membership fee goes around USD1.300,00 and USD4.000,00.
However, if you are looking for other solutions on finding partners to exchange business with you can always try a logistics network optimization tool, new platforms on the forwarder market that gives you the possibility of finding other forwarders to partner with for a reasonable price.
Parnity is an alternative platform to the logistics networks, and better, with more solutions to improve your freight forwarder business.
- What is Parnity?
Parnity is a collaborative platform designed for freight forwarder companies to manage current and future forwarder partners, find new reliable ones, be found by forwarders worldwide, and analyze partnership’s quality. To know more about Parnity click here.
- How does Parnity solve the problems the logistics networks does?
The logistics network as we mentioned earlier, gathers independent freight forwarder companies from different countries in order to provide an environment to build partnerships and exchange business. That is the main problem the networks solve – finding forwarder partners.
And that is one big problem that Parnity also deals with, inside the platform you will find over 12,000 freight forwarders from around the world. But instead of paying thousands of dollars per year with the logistics networks in Parnity you only pay $48 per month to not only find forwarders but also to manage and analyze them.
|Basic search||Filters to make search more accurate|
|Reach a limited number of partners worldwide||Reach over 12k forwarders worldwide in more than 180 countries|
|No easy way to help you make decisions and share information with your team||Tool to manage forwarder partners that helps you to make faster decisions on who to quote available to your whole team|
|No data analysis available||Business Intelligence tool to analyze the quality of your partnerships|
To sum up
Now that you know what is a logistics network, how to choose one, how to compare them, and what other options there are available in the market you are prepared to make guided decisions.
Don’t forget to always prioritize the logistics network or the logistics network optimization tools according to your forwarder’s needs, compare and analyze them, use our comparative board to do it.
|Global Reach with around 9.000 members||Limited membership||Limited membership||12,000 worldwide freight forwarders|
|Financial protection||Financial protection||Financial protection||No financial protection|
|Annual network events||Annual network events||Annual network events||Monthly events with different topics of the FFW market|
|Third party analysis of the members||Third party analysis of the members||Third party analysis of the members||Tool to assist you with your OWN analysis of partners|
|No way to manage current partnerships||No way to manage current partnerships||No way to manage current partnerships||Tool for partnership management|
|No customer service||Customer service||No customer service||Customer service|