With the 20% fall in the value of sterling after the EU referendum, this has had a significant impact on many UK businesses, particularly importers who source in major currencies like the US dollar.
Furthermore, as most freight costs are calculated in USD, this has meant that freight costs for both importers and exporters have increased dramatically, and they face erosion of margin or increasing their own prices. The increase in freight cost also increases their Customs import duty liability as freight costs are part of the value for Customs on the import Customs entry (C88).
This presents many customers with a dilemma as they would like to reduce costs or improve service but they really don’t have the resources or expertise to carry out an exercise like this professionally and they really don’t want to put their existing supply chain at further risk.
At SCL, our considerable experience and market knowledge allows us to quickly assess where savings and improvements can be made and, with our shared savings fee model, the freight review is self-funding and delivers significant net savings to your bottom line, money you can invest in other areas of your business.
Since 2010, we’ve delivered average savings of 35%, and as much as 60% in one case - and this was before the fall in the value of sterling.
But let’s be clear - this isn’t just a cost down approach - it’s important to us that the new service works even better than before. We achieve this by re-assessing the customer’s needs before we start and making these a key part of the request for quotation (RFQ) process and the new operational model.
Once implemented, we monitor service levels and manage the traffic day in, day out, providing the client with a source of expert advice and support. We also re-negotiate freight rates as and when they expire, keeping costs competitive, clearly defined and under tight control.
Many customers find our service to be so invaluable that they stay with us long term using our Freight Management service.
Our freight reviews are very thorough and include:
Your initial consultation with SCL is free and without any obligation. We then carry out an assessment to review your activity and identify savings so you know how much you could save – and how we could also improve things operationally.
"Even after Andy’s fee we have saved a huge amount of time and saved over £10,000 – a complete no brainer really."
"It is good to know that we have your experience to smooth the path for us."
"We did not know we had a problem with our import shipping before Andy Cliff came to visit."
"If you are looking to be more forward thinking in your freight imports, save money, or just take the headache out of this part of your business, call Andy. You will not be disappointed."
"The results have been very impressive with a more streamlined supply chain, geared to our needs and a better service, both in terms of transit time reliability and communication."
"As well as achieving annual savings of around 50% on our freight costs, we also saw marked improvements in the service levels."
"Andy’s diligence and hard work resulted in Customs repaying £30,000 of import duty to Middleby UK."
"During the first 12 months of operation we have made net saving of circa 30% compared to the previous year."