(3) How to select the best service loop for your export shipment?

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Selecting the right service loop to ship your export cargo is a vital component of your supply chain strategy. Find out how you can optimise your selection of the right service loop.

Making sure product is available to your customers in the right quantity at the right time and place is the holy grail of any supply chain.

Selecting the right service loop to ship your export cargo on is therefore a vital component of your supply chain strategy.

This article makes some pragmatic recommendations to optimize your selection of the right service loop and lift your order fulfillment performance to the next level.
1. Identify the required arrival date at destination
The first step to selecting the right service loop is to identify when the cargo is required to be available at destination in order to fulfill your obligations to your customer.

2. Identify the product ready date
The second step in the process is to understand when manufacturing of your goods for any given purchase order is expected to be completed. Work closely with your production team and aim to agree on a specific date for the product to be ready.

3. Calculate the maximum transit time
Now you know when the product is ready and when it supposed to be delivered, you can calculate the maximum transit time.

Do take note that containers need to be gated in well before departure and take into account CY cut-off dates. As a matter of precaution, assume the CY cut-off is 48 hours before the scheduled departure date and include this in your transit time calculations.

4. Identify service loop options
For most port pairs, there are multiple service loops available to pick from. Short list the services that meet your requirements for CY cut-off, departure and arrival.

5. Optimize costs
Now you have shortlisted the service loops that meet your business needs, obtain quotations from carriers and/or forwarders to secure the most cost efficient, yet reliable option.

Sounds like a lot of work? Don’t worry. We developed eShipAsia to help you to evaluate your options and make the best decisions in less than a minute.