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This is a team assignment to be prepared in groups of 3-4 students. Some, probably not all but this depends on timing, may be asked to present your findings to the group. Presentations should be scheduled for roughly 5 (at most 10) minutes.

Growth in international trade has increased the importance of logistics and international transportation as strategic tools for achieving competitive advantage. One solution is to take advantage of the services of a freight forwarder. The evaluation and selection of a freight forwarder is a critical strategic decision for managers involved in international operations. In this Management Skill Builder, we focus on a basic approach for evaluating freight …show more content…

8. What types of other services does the forwarder provide? Examples of these include customs brokerage, logistics management, consulting on international shipments, and EDI services. For example, using EDI, the exporter can transmit exporting documentation to the forwarder, and track the location and status of international shipments.

Based on the information collected above, make a recommendation on which of the three freight forwarders you believe your firm should employ. Be sure to justify your answer, by summarizing the information gathered in response to the above questions.

When seeking a freight forwarder, the above questions address only some of the issues that you might face in the real world of international business. In a real situation, you would likely seek answers to other questions as well, depending on the firm’s situation, regarding issues such as the type of product, destination, size of shipment, and available exporter resources. Other issues to investigate include product/service specialization, responsiveness and attention to exporter needs, financing capabilities, financial position, and pricing, as well as the forwarder’s efficiency and reliability. Many of the evaluation criteria used in selection are subjective and therefore not easily quantifiable. It is critical to evaluate potential freight forwarders in both quantitative and qualitative terms.

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