How joining a logistics network could benefit your business

Home » Business Model » How joining a logistics network could benefit your business

Being a freight forwarder in these times in not very easy, considering that 10 large multinationals hold the monopoly on over 40% of the market. Many potential collaborators can often be reluctant to do business with a smaller company they have never heard of, even if they do offer a better price. This is why joining a logistics network could improve your business significantly and here is what you have to gain:

 How joining a logistics network could benefit your business

An exclusive territory and new business

The way a freight alliance is works is by offering each member a territory where they can be exclusive members. This means that every time someone from the alliance will need to ship something to that territory, they will be automatically connected to you. In addition, all members of a logistics network agree to use other members of their network whenever they need to collaborate with someone. This is why the chances of getting new contracts through the other members of your alliance are very high and soon enough your business will become more profitable. You will start to receive routed cargo and sales leads from the network and you will develop new contacts of your own.


Reliable partners throughout the world

You have to keep in mind that in order to be accepted in a respected alliance, you will have to be checked for your financial credibility, business volume and quality of services, but so will the rest of the members in that alliance. This means that once you are accepted you can expect to only deal reliable partners and never struggle with agents who are willing to reciprocate when it comes to shipments.

Payment protection and fast quotations

Alliances protect their members from late payments by enforcing strict rules in this field that all members abide to. In addition, every member will have to post their local charges, which is why their collaborators will be able to make a faster idea regarding how much they will have to pay for their services.


Global recognition

As a small freight forwarder many companies might be reluctant to do business with you because they have never heard of your company before. However, once you are part of a bigger alliance, you will earn a brand of your own and thus you will have more credibility when dealing with new clients. In addition, the fact that you will display a reputable brand will also attract new clients, which means that your business will grow and will become more profitable.


These are the main benefits that you enjoy when you decide to join a logistics network. These alliances are coordinated by people with a lot of experience in the field who know how to manage all members and offer everyone equal chances and benefits. Even though there most likely will be an annual membership fee that you have to pay, you will soon realize that being the member of an alliance is very profitable and paying an annual fee is a very good investment.

June 2022