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Choosing the wrong freight forwarder or choosing a freight forwarder based on the lowest price for your mine or project could end up costing you the earth, according to logistics specialist Peter Townley.
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As managing director of Townley Group International – a company specialising in freight forwarding and project cargo services for the resources sector – and with more than 25 years experience, Peter has seen it all.
“Perhaps the most costly mistake that procurement personnel could make is selecting a freight forwarder on price alone,” says Peter.
“In my experience a lot of forwarders are chosen on price and the person selecting doesn’t really look deep into what the
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forwarder can achieve. While price is an important consideration, it often runs second to on-‐‑time delivery.
“If a project is delayed by a day a week or a month due to the forwarder giving a low price and choosing non-‐‑performing carriers or airlines, then the actual cost to the project could be astronomical in terms of shutdown or delays at site.”
With so many links in the supply chain, says Peter, it is
How to save time and money and minimise downtime for your mine or project with freight forwarding
Troy Resources’ mill shell en route through the Andes from Cobar NSW.
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important to look beyond price and seek the services of a logistics specialist with an intimate knowledge and understanding of the various transit options, availability and timings, from start to finish.
Project managers need to consider that ships and aircraft are not always available on the time frame they want, Peter advises.
“Careful forward planning is required when it comes to execution of projects and the project forwarder is a critical part of the supply chain,” he said.
“The forwarder is able to construct long range scheduling based on the build and ready dates of major mine assets. This allows for better flexibility with vessel owners and aircraft operators.
When engaging a freight forwarder, advises Peter, seek a credible, experienced and reliable provider with a ‘hands on’ capacity at the load and discharge areas – and all areas in between.
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“Regrettably this doesn’t always happen in large companies, as the work is often passed to someone in the organisation who may not have the depth of experience that a more senior or experienced person has in cargo
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management,” he said. “Sometimes, bigger is not always better. "ʺ
“The forwarder should be very hands-‐‑on. Taking care of the cargo, making sure it is loaded and, that the client is getting constant updates from start to finish."ʺ
The biggest pitfall in selecting a freight forwarder with the lowest price, says Peter, is the ‘variation of contract’ where a forwarder can come back at the client and charge a premium based on non-‐‑information or a change in the contract.
“These areas need to be viewed carefully by the project manager and the procurement teams, as this can often end in litigation or heavy financial losses to the client,” he said.
“In some instances cargo can be held up until payments or agreements have been made,” again leading to possible lengthy delays and additional cost.
“The forwarder should be very hands-‐‑on. Taking care of the cargo, making sure it is loaded and, that the client is getting constant updates from start to finish."ʺ -‐‑ Peter Townley
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The freight forwarder should be an integral part of a project or operation, says Peter, and while not on site 24/7 they should be constantly monitoring and updating information to the client.
“The forwarder must
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be a part of the decision making process or contracted as an advisor to the team,” he said.
“Every project manager and procurement person knows someone who knows someone who owns or has ships or aircraft, but fundamentally these are relationships that have the potential to turn bad – and the consequences can be costly.
“Carriers and shipping lines have their own set of rules that are well established in law. Any misunderstanding
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or misinterpretation of these laws can have serious financial implications.”
"ʺAs mine operators and project managers face increasing demands in meeting on time performance targets and budgets"ʺ, says Peter.
"ʺA freight forwarder which can work seamlessly with their operation can deliver huge benefits."ʺ
“Making the freight forwarder part of the decision making process will save you time and money and help you avoid hassles,” says Peter.
Two x 90 tonne dragline MG sets ready for the long haul to BMA Coal Blackwater. Careful forward planning is required when it comes to execution of projects and the project forwarder is a critical part of the supply chain.
An excellent project forwarder can save the projects millions if they are involved from the outset and have all the relevant information.
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“An excellent project forwarder can save the projects millions if they are involved from the outset and have all the relevant information."ʺ
“The forwarder can work with Customs and the Australian Quarantine and Inspection Service (AQIS) to mitigate many hard to pass areas, as well as looking for the tariff
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concessions for the project.
“A good forwarder does this daily and is up to date on current issues with ships, planes, customs and AQIS, as well as the local issues with trucking and cranes.”
Better tracking With the mining industry experiencing dramatic growth in recent years,
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most freight forwarders have not kept pace when applying technology such as Global Positioning Systems (GPS) and Radio-‐‑frequency identification (RFID) to track and trace cargo in real time, according to Peter.
“GPS and RFID allows for better controls on each piece of cargo from origin to destination and we use these systems on all major
One of two 14 tonne belt reels headed for Ok Tedi flown from Greece to Port Moresby for breakdown. The freight forwarder should be an integral part of a project or operation.
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projects; it allows the customer to access cargo movements in real time while on site, or in a marshaling area,” Peter said.
“This technology can save the end user much time in locating cargo, but it also provides a full inventory of cargo on hand and its location.
“Our company applied this technology on a job for Troy Resources to mobilise an entire gold processing plant from Cobar in New South Wales to San Juan in Argentina.”
Purchase Order (PO) management systems, says Peter, are also being successfully employed in cargo management.
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“This allows the customer to upload their purchase orders through our system and get on with their job and the forwarder to expedite the cargo,” he said.
“The forwarder is then giving the customer real time information through the system via email or via text and this allows the customer to have accurate information based on the update from the supplier via the forwarder.
“This not only saves time, but also saves considerable money in not employing an expeditor to handle the purchase orders.
“On some projects there may be as many as five or six expeditors.
“The cost to the project is enormous. By giving this to the forwarder the cost is reduced and time is saved.” n
About Townley Group International
Townley Group International specialises in the worldwide logistics and freight forwarding industry and understands client needs at every level.
Services include: project and out of gauge cargo; freight forwarding by air and sea; aircraft charters; vessel charters – shipping; war zone logistics; salvage; customs clearance – marshalling, warehousing and consolidations; worldwide tracking, GPS tracking, and RFID and asset management.
For more information, call Peter Townley on 0407 727 222 or email ptownley@townleygroupinternational.com
The forwarder gives the customer real-‐‑time information through the system via email or SMS text
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