Business Valuation Increased with Air Freight Transportation
Originally Written by Carol Frachon (2017), Updated this week by Leah Barrier (2019)
Cost is quickly justified on expedited freight when production and availability are on the line. Delayed shipments and missing pieces are the furthest thing away from business efficiency, thus integrating air freight shipments as a viable forwarding option, becomes the rule instead of sporadic exception.
As a service-oriented business of any kind, the ability to move inventory in an urgent and streamlined manner is vital to comprehensive growth and scalability. Demand forecasting then becomes integral to the business development and planning phases. Under or over in any capacity can greatly hinder projected profitability.
As Carol Frachon wrote in this original blog post, “Demand forecasting is crucial to the success of a business. Some industries experience forecasting challenges. Retail merchants, in particular are at risk, as they carry seasonal items. Too low supply of goods on hand can mean a loss in sales, while an overage of goods can drive a liquidation of sales and a loss in profit. Considering shipping costs of the inventory is prudent in forecasting to build the cost of shipping into the sales price. Air freight can often be the most effective and flexibly way to adjust for shipping needs.”
While air freight may require an initial increase in overhead, the money saved long term greatly affects the business’s bottom line. The ability to meet time sensitive deadlines, temperature-controlled demands, and governing regulations allows companies to refocus time and energy on other predominant developing factors without worrying about supply chain mishaps.
To learn more about the efficiency of AOG, expedited air cargo, the importance of an advanced air freight network in general, or if you have any unanswered questions and would like a brief consultation, please reach out to us at 704.357.0474 or email us HERE.
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