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Shipping Companies handles many other operations besides hauling goods from one point to another. These companies not only fill unseen gaps, but also allow the supply chain to operate efficiently. 

A shipping company can be defined as a corporation that provides maritime transportation. shipping company either have their own ships and/or operate with charter ships . As per statistics, the largest shipping companies in the world use their own ships, whereas the other half uses charter ships. 

How Exactly do Shipping Companies Operate?

We can get a thorough understanding of how a shipping company work based on the services they provide. The top shipping companies in Canada and the USA provide the below-mentioned services:

Shipping Services

Shipping services provided fall into four modes (categories), and intermodal shipments are quite common. A shipping company must be fully aware of all four basic modes:

Road – Shipping companies can provide surface transport within the state’s or country’s boundaries. These shipments either can have full loads or mixed loads.  

Rail – Rail transport is used for domestic shipping where bulk quantities of goods are involved. In some cases, the shipping company can provide both rail and road transport for cross border and local delivery. 

Marine Shipments – In most cases, the marine mode is used for international shipments and involves full containers. The transit time can range anywhere from a week to a few months and is based on the destination and the time needed for customs clearance . Global shipping companies can also arrange door-to-door delivery services, which include customs duties and clearance.  

Air Shipments – Airfreight is the option used for those shipments that demand the transit time to be short. A shipping company arranges transportation of the goods from the airfreight’s point of dispatch to the arrival, and until the goods are delivered at the final destination. 

Warehousing

Warehouses have emerged from being just storage spaces to digital management systems that not only track the incoming and outgoing inventory, but also identify the delivery and pickup locations, aid in FIFO control, and ensure safety and security of the stored goods. 

Each of the operations depends on the e-management system and real-time recording is done with the use of scanners and logging devices. Shipping companies are now equipped with digital warehousing solutions that keep track of the exact location of every item. 

Shipping companies also tailor their services based on the client’s requirements. Each value-added service provided by these companies provides the customers with easy access to real-time information. The data reports are generated in a fraction of seconds, and everything from backorders to the return of products is tracked and recorded, thus ensuring automatic and smooth stock rotation. 

The Inbound Process

Shipping companies understand the importance of accurate and quick handling of inbound inventories. Even a small error made while recording the incoming and outgoing products can create major problems in the warehouse and can cause a huge loss to the business. This is one of the many reasons why businesses rely on warehouses that use efficient warehouse management systems. 

Shipping companies keep track of the inbound receipt as well, and have info about the date of manufacturing and expiry, the serial numbers, the tracking details of the order if any, and instructions for reloading or backorders. 

Fulfillment

Most of the shipping companies allow logistic companies to store the raw materials or parts, or even the finished goods at their warehouses. When 3rd party companies use the warehouses provided by the shipping companies, it reduces their own space requirements. 

The professionals at the warehouse are well trained, are skilled enough to manage various types of inventories, and make the best use of the space available. 

The Outbound Process

Orders can be placed by a customer or they can be via a push system (where the goods are shipped automatically based on an agreement). Regardless of which, the inventory needs to be moved to a space to enable efficient loading. 

Shipping companies make use of various picking strategies, and these can vary based on the product and the company. Most manufacturing companies use a retrieval system. In a few situations, picking and loading of the goods can also be done manually, to prevent damage. The shipping companies also take care of the proper documentation for loading and shipping the products. Once the products are loaded, the delivery is made.

Conclusion

The concept of supply chain logistics has seen rapid growth in the last decade, and shipping companies have evolved and changed the way the inventory is managed. With the use of high-end management systems, storing and shipping of goods is now done with utmost efficiency.