Multimodal transport is a type of transport that is carried out through two or more different branches in the process of shipping goods from the point of departure to the final destination. This type of transport, or transport combination, is chosen for the fastest and most efficient movement of goods and cargo, especially when it comes to complex processes. The modes used in multimodal transport can vary from air, sea, rail and road freight, depending on the specifics of each demand.
With today's business environment that has become congested and competitive, there is a need to find and adopt optimal logistics and supply chain management. Companies are trying to find different solutions to make their supply chain and logistics process as profitable and optimal as possible. One of the possible solutions is the use of multimodal transport.
In the following, we will show the benefits of the multimodal solution and how it contributes to the improvement of business processes related to the supply chain and logistics. At the same time, we will present the challenges of a multimodal solution.
Benefits of using multimodal transport stragety:
- The role of the carrier – Only one carrier/forwarder supervises the entire journey of goods/cargo, regardless of the type of transport, i.e. business only applies to ONE contractor. This method provides the sender with much clearer and clearer communication and a less complicated logistics operation. When working with multiple contractors, this could reduce logistics efficiency and lead to shipment delays.
- Flexibility – Načini transporta se mogu prilagoditi kako bi se zadovoljila tražena potreba odnosno ako jedna vrsta transporta ima kašnjenja , umjesto nje izvođač može odabrati neku drugu vrstu transporta kako bi se osigurala pravovremena isporuka robe.
- Competitive prices – Another advantage of offering this type of transport is the possibility of offering competitive prices. In most cases, the contractor can negotiate better prices when he is in charge of the entire logistics operation and not just one phase of it. This happens because you will have a broader perspective of the shipping process and how to optimize costs at every step.
- More agile transport - Shortening the delivery time is probably the biggest reason why someone decides to hire multimodal transport. By offering this type of service, you will be able to deliver your customers' cargo with unparalleled agility. The biggest reason for this is that the same staff will be in charge of monitoring the entire shipping process, so communication during the trip will be much easier and more time efficient.
Challenges of multimodal transport:
- Clear and consistent communication - As this is a transport that requires several modes of transport that complement each other, it is therefore necessary to manage and organize a lot of logistics operations because the senders have to be up to date with the shipments as they travel by different means. This is why it is important to establish clear and consistent communication with your freight forwarder.
- Collection of customs and other accompanying documentation – Goods/cargo traveling by different types of transport require different documentation and customs permits. This can add a layer of complexity to supply chains as each shipping method has its own requirements and regulations that require greater planning and coordination.
- Specilized goods - If a shipment requires special handling and conditions, then the risk of damage may increase. That is why it is very important to make a decision on a multimodal solution depending on the specifics of each situation. Therefore, the factors that play a role in making the right choice according to a particular type of goods/cargo are very important.
Choosing to use multimodal transportation simplifies logistics by using one contract and carrier to manage the entire trip. This option can streamline operations and reduce complications in the supply chain by communicating with a single reliable transportation service provider.
Looking for a reliable partner to take care of your multimodal transportation, in that case, be sure to contact us with confidence at info@arrslog.hr.
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