International logistics is globalized. How to set KPI to evaluate a good overseas agent of international freight forwarding?

10月11日 18:02:11

How to evaluate a good international freight forwarder overseas agent, can set up the following key to evaluate:

1. Credibility and reputation:

-View the credibility and reputation of the agent. Find out if they have a good business record and reputation. can be assessed through customer feedback, industry word of mouth and reviews.

2. Licensing and certification:

-Ensure that agents have the appropriate licensing and certification to operate legally in the international freight field. This may include membership in the International Freight Forwarding Association, etc.

3. Experience and expertise:

-Learn about the experience and expertise of agents in the field of freight transport. Are they aware of international shipping rules and regulations? Are they familiar with the various shipping and air transport details?

The Global Network:

-Ensure that the agent has an extensive global network of agents. This means they are able to offer you a wide range of international shipping options and have a local partner.

5. Service scope:

-Understand the scope of the agent's services. Do they provide the services you need, such as shipping, air freight, cargo tracking, customs clearance, etc.?

6. Prices and fees:

-Compare agents' price and fee structures to ensure they are reasonable in the market. At the same time, it is necessary to clarify which services are included in the cost.

7. Technology and Digital Capabilities:

-Whether the agent has modern technology and digital capabilities to provide more efficient freight operations and real-time tracking.

8. Customer Support:

-Visit the agent's customer support team. Do they provide timely response and assistance to resolve potential problems or emergencies?

9. Insurance coverage:

-Ensure that the agent provides cargo transportation insurance or recommends an appropriate insurance plan to protect your cargo from potential risks.

10. REFERENCE AND RECOMMENDATION:

-Seek advice and recommendations from other clients. This can help you understand your agent's actual performance and credibility.

11. CONTRACT AND TERMS:

-Before signing a contract with an agent, carefully review the contract terms and conditions to ensure that you understand various aspects of responsibilities and obligations.


Choosing a suitable overseas agent requires careful research and comparison to ensure that they can meet your international freight needs and provide you with reliable services.

As a U. S.-based international freight forwarder, when evaluating global offshore agents, you can consider the following key performance indicators (KPIs) to assess their capabilities and performance:

1. On-time delivery rate (On-time Delivery): Assess whether the agent can deliver the goods to the destination on time, which is the customer and supply chain in the key indicators.

2. Cargo loss rate and damage rate: measure the loss and damage of goods in transportation, and the measures taken by the agent to reduce these problems.

3. Transportation cost: Analyze whether the price offered by the agent is competitive and consider the transportation cost to your business.

4. Cargo visibility: Evaluate whether the agent provides real-time cargo tracking and visibility so that you and the customer can monitor cargo status.

5. Customer satisfaction: collect customer feedback and evaluation, understand their agent satisfaction and dissatisfaction.

6. Customs clearance speed: If the goods need customs clearance, evaluate the agent's customs clearance speed and efficiency to ensure that the goods as soon as possible into the destination country.

7. Compliance and Regulatory Compliance **: Ensure that agents comply with international trade regulations and laws to avoid potential risks and issues.

8. Communication **: Assess agent's communication skills, including timely response and collaboration.

9. **Risk Management**: Understand how agents handle risk factors, such as weather events, political unrest, etc., to ensure cargo safety.

10. **Technical Capability**: Examine whether agents use advanced technology and digital tools to optimize logistics processes and improve efficiency.

11. **SUSTAINABILITY AND ENVIRONMENTAL PROTECTION**: Learn about the agency's transportation practices and sustainability practices.

12. **Financial Stability**: Assess agents' financial stability to ensure they have sufficient resources to handle your business.

these KPIs can help you fully assess the performance of overseas agents and ensure that they meet your business needs and expectations. Based on your business priorities and goals, you can adjust and optimize these KPIs to better meet your needs. Establishing clear contracts and communication channels with agents is also key to ensuring good cooperation.

When evaluating KPIs, you can use specific formulas and calculations to quantify and measure agent performance. Here are some examples:

1. On-time Delivery Rate:

On-time delivery rate = (number of goods delivered on time/total number of goods delivered) x 100%

2. Goods Loss Rate:

Goods loss rate = (quantity of lost goods/total quantity of goods) x 100%

3. Goods Damage Rate:

Goods damage rate = (damaged goods quantity/total goods quantity) x 100%

4. Transportation Cost (Transportation Cost):

Transportation cost = total transportation cost/transported goods quantity

5. Customer satisfaction (Customer Satisfaction):

Customer satisfaction = (satisfied customers/total customers) x 100%

6. Customs clearance speed (Customs Clearance Speed):

Customs clearance speed = (customs clearance time/total cargo quantity)

7. Risk management efficiency (Risk Management Efficiency):

Risk management efficiency = (successful handling of risk events/total risk events) x 100%

8. Technical application (Technology Adoption):

Technology application = number of processes using advanced technology/total process number


these formulas can help you quantify KPIs and get a clearer picture of your agent's performance. You can apply these formulas to an agent's monthly or quarterly data to monitor trends in their performance. Depending on your specific KPIs and business needs, you can customize the formula and adapt it to your assessment methodology. Ensure clear contracts and KPI targets are established with the agent so that both parties are clear about expectations and metrics.

international freight forwarders usually provide a wide range of services to support the international transportation and logistics of goods. The following are some of the main services that an international freight forwarder may provide:

1. Cargo Booking: Agents can assist cargo owners to book cargo transport services, including the choice of appropriate modes of transport (such as sea, air, land, etc.), freight forwarding and shipping companies, as well as the arrangement of cargo transport routes.

2. Customs declaration and clearance: The agent can handle the customs declaration and clearance procedures of the goods to ensure that the goods are legally imported and exported. This includes document preparation, tax payment and customs communication.

3. Cargo packaging and marking: The agent can provide cargo packaging and marking advice to ensure that the goods are safe and undamaged during transportation.

4. Cargo storage: agents can provide goods temporary storage and warehousing services, so that the goods arrive at the destination before management.

5. Cargo transportation: the agent assists in the actual transportation of goods, including cargo handling, transportation, tracking and delivery.

6. Insurance arrangements: The agent can assist the cargo owner to purchase appropriate cargo insurance to ensure that the goods in transit are adequately protected.

7. Cargo inspection and quality control: The agent can arrange for cargo inspection and quality control to ensure that the cargo meets specified standards and quality requirements.

8. Supply chain management: Agents can provide supply chain management services, including inventory management, order processing and logistics planning, to optimize the flow of goods.

9. Document processing: The agent is responsible for handling cargo transportation and customs procedures related to the document work to ensure all legal compliance.

10. Risk management: Agents can provide risk management advice to help shippers reduce cargo transportation and logistics potential risks.

11. Consulting services: Agents can provide international trade, logistics and transportation consulting services to help shippers develop the best strategies and decisions.

the scope of services of international freight forwarders may vary depending on the company and customer needs, the overall goal is to ensure that goods are transported safely, on time, legally and in the most economical way when they arrive at their destination from the place of departure. Shippers can choose the right agent as needed to meet their international transportation and logistics needs.

Signing a contract with an overseas agent is an important business decision that requires careful consideration and attention to the following:

1. Service Scope and Obligations:

-Clarify the scope of services and obligations of the agent in the contract, including loading and unloading, transportation, customs clearance, tracking, etc. Ensure that all services are clearly defined in the contract.

2. Price and fee structure:

-Defines the price and fee structure in the contract, including commissions, fees, surcharges, etc. for the agent. Ensure costs are clearly visible to avoid subsequent disputes.

3. Payment Terms:

-Specify the terms and schedule of payment. Determine the payment method and cycle to ensure that the payment process is smooth.

4. Cargo insurance:

-If the agent provides cargo insurance, specify the type of insurance, coverage and cost. Learn how to handle potential cargo loss or damage situations.

5. Liability and Indemnification:

-Defines the liability and indemnity clauses in the contract. Clear the parties in the performance of the contract in the process of legal responsibility and liability.

6. TERMINATION OF CONTRACT:

-specifies the conditions and procedures for termination of the contract. Learn how to terminate a contract, including advance notice and default clauses.

7. Dispute Resolution:

-Defines dispute resolution mechanisms, including arbitration or court proceedings. Ensure that the dispute resolution methods specified in the contract comply with legal requirements.

8. Confidentiality Agreement:

-If the contract involves sensitive information or trade secrets, consider including a confidentiality agreement to protect both parties' information.

9. Alterations and Revisions:

-prescribes procedures for variation and amendment of contracts. Clarify how to handle contract changes, including written notice and mutual consent.

10. Law applicable:

-Determines the law of which country or territory the contract is subject. This helps to resolve legal issues with a clear applicable legal framework.

11. TERM AND RENEWAL:

-Defines the duration of the contract and whether it can be renewed. Clarify the validity of the contract and the renewal conditions.

12. Signature and entry into force:

-specifies the manner and effective date of the contract. Ensure that both parties follow the prescribed procedures to sign the contract.

13. Suggest legal advice:

-If the contract involves complex legal issues, it is recommended to seek legal advice or ask a lawyer to review the contract to ensure that the contract meets the legal requirements and protects your rights and interests.

Before signing a contract, ensure that you fully understand the terms of the contract and have thorough discussions and consultations with the agent to meet the needs and expectations of both parties. In addition, it is recommended to work with a legal professional to ensure that contracts are legally valid and enforceable.

International freight forwarders' overseas agents usually need to obtain the following certifications and licenses to operate legally and establish credibility:

1. Customs Licence:

-Overseas agents need to obtain a customs license from the relevant country or region in order to carry out customs formalities such as customs declaration and clearance. This ensures that they can legally represent your goods.

2. International Freight Forwarders Association membership:

-Becoming a member of an international freight forwarding association (such as the International Freight Association-FIATA) can improve the credibility of the agent. These associations typically require members to adhere to certain ethical and professional standards.

3. Transport and logistics certification:

-Overseas agents may need to obtain transport and logistics field related certification, such as ISO 9001, to prove their service quality and reliability.

4. Company Registration and Licensing:

-Overseas agents need to be registered in their country or region and obtain legal operation required licenses and permits.

5. Insurance coverage:

-Agents usually need to purchase appropriate liability insurance to ensure that in the event of a problem in the transportation of goods, they can provide compensation.

6. International transport documents and permits:

-Depending on the country or region's regulations, agents may need to obtain international shipping documents and permits to perform cross-border transportation.

7. Maritime Agent License (if applicable):

-If the agent provides maritime transport services, it may be necessary to obtain a maritime agent license.

8. Applicable Customs Clearance (if applicable):

-Depending on national and regional regulations, agents may require specific types of customs permits, such as food import permits or special cargo permits.

Please note that requirements vary according to national and regional laws and regulations. Therefore, it is recommended to work with the overseas agent you wish to work with to understand the specific requirements of their country or region and ensure that they have legal licenses and certifications to ensure that they can legally represent your goods. This also helps to reduce potential legal risks and improve cooperation credibility.

Cargo insurance is a form of insurance that protects goods against the risk of loss or damage during transport. It usually covers the loss that may occur during the entire transportation of goods from one location to another, including sea, air, land and multimodal transportation.

Here are some important points about cargo insurance:

1. Insurance types: Cargo insurance has different types, including the following main types:

-Marine Cargo Insurance **: used to cover cargo losses in maritime transport.

- **Air Cargo Insurance**: Used to cover air cargo losses.

- **Land Cargo Insurance**: Used to cover land transport of goods lost.

- **Multimodal cargo insurance**: used to cover multiple modes of transport of goods lost.

2. Insurance coverage: Cargo insurance usually covers the following risks:

-Fire or explosion

-Killed, rocked or sunk

-Storms, hurricanes, floods

-Pollution and oil spills

-Theft and robbery

-Goods lost or damaged

3. **Allocation of liability**: In cargo insurance, the determination of liability for loss usually depends on the "who is responsible" principle. This means that if the loss is caused by the fault of the carrier or other responsible party, they may be liable.

4. **Insurance costs**: The cost of cargo insurance is usually based on factors such as the value of the goods, the mode of transport, the type of goods and the destination. Insurance costs are usually based on a fraction of the value of the goods.

5. **Declaration and Claim**: If the goods are lost or damaged in transit, the owner is required to file a claim with the insurance company in a timely manner. The claims process usually requires the provision of relevant documents and evidence to support the claim's validity.

6. **Insurance limit**: Cargo insurance usually has a certain insurance limit, which is the maximum amount that the insurance company is willing to pay. Shippers should make sure to buy enough insurance to cover their cargo value.

7. **Ownership of goods**: Usually, cargo insurance is purchased by the owner of the goods, not by the transportation company. Cargo owners usually have title to the goods, so they are responsible for taking out appropriate insurance to protect their goods.

Cargo insurance is a very important part of international trade and transportation. It can help cargo owners reduce risks and ensure that goods are properly protected during transportation. In international trade, cargo insurance is usually purchased by cargo owners or importers to ensure that goods are safely transported around the world.

technology and digitalization are becoming more and more important in the field of international freight forwarding and logistics. They play a key role in improving efficiency, reducing costs and providing a better customer experience. Here are some relevant knowledge and artificial intelligence in this application:

**Technological and digital importance**:

1. Real-time tracking and visibility: Digital platforms and systems enable shippers and freight forwarders to track cargo location and status in real time, providing greater cargo visibility and helping to reduce cargo loss and delay risks.

2. Automated processes: Technology and digitization can automate many logistics processes, including order processing, inventory management, cargo tracking and customs clearance procedures, thereby increasing efficiency and reducing manual errors.

3. Data analysis and decision support: Digital systems can collect large amounts of data, which can be used for analysis and decision support. By analyzing data, freight forwarders can better optimize their supply chain and transportation strategies.

4. Customer experience: Technology and digitization have improved the customer experience, including online ordering, tracking goods, online customer support, etc., making it easier for customers to manage and monitor their goods.

Artificial Intelligence (AI) in International Forwarding and Logistics **:

1. Intelligent route planning: AI can analyze various factors such as traffic, weather, cargo volume, etc. to determine the best transportation route to save time and cost.

2. Demand forecasting: AI can analyze historical data to predict demand and help freight forwarders optimize inventory management and resource allocation.

3. Automated customer service: AI chatbots can provide real-time customer support, answer frequently asked questions and handle queries to improve customer satisfaction.

4. Risk management: AI can monitor supply chain risk factors, such as political unrest, weather events, etc., and provide early warning to help freight forwarders take appropriate measures.

5. Logistics optimization: AI can analyze logistics network, optimize transportation plan, reduce transportation cost and reduce transportation time.

6. Machine learning: Through machine learning, AI systems can continuously improve their performance and better adapt to the changing logistics environment.

In general, the application of technology and digitalization and artificial intelligence is very important for the international freight forwarding and logistics industry. They can improve efficiency, reduce costs, provide a better customer experience, and help freight forwarders to better manage and Optimize the supply chain. As technology continues to advance, these trends will continue to evolve and evolve.

Source: American International Logistics Association

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