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Are You Losing Money with the Wrong Transportation Strategy?

March 8, 2019

 

Your business lacks advanced networks like Caterpillar. What happens to your crane when the logistics to ship a spare part takes 14 weeks to receive? The downtime cost of that crane could be detrimental. 

 

The prerequisite for a smooth crane business model is contingent upon a streamlined supply chain and the right logistics provider. Do you have the insurance necessary and proper procedures in place to cover potential damage to the crane while in route? Is it more profitable for you to import sections of the crane versus the entire crane at once based on current tariffs and duty rates? Cranes in their entirety import duty free, while hoists and jib sections shipped separately have increased taxes attached to them.

 

The Importance of Project Management

 

A company was in the process of transporting a brand-new crane to a predetermined construction site. The structure was loaded onto a truck and released without a comprehensive check. The truck traveled under a bridge standing lower than current dimensions, making impact with the crane and completely destroying its control panel. This was not a part that could be expedited overnight because of obvious reconfiguration issues and the sheer complexity of the panel in nature.  This million-dollar crane was out of operative commission for 3.5 months because of an avoidable mishap that resulted in the destruction of a $10,000 control panel.

 

Front end planning is essential to the transport of a crane and/or crane parts. Being able to source particular product and identify where a proxy would come from initiates the shipment. Having a logistics team in place to move it where it needs to go, thus finalizes this phase.

 

Deliberately mapping out an effective and thorough approach to crane transportation and spare part replacements can generate immeasurable returns. The complexity of this very environment requires having a comprehensive plan fully woven within your supply chain. An AOG network that is functionally able to swiftly respond to the need for spare parts, link with prearranged suppliers, set up the movement of these parts, and effectively clear customs with proper documentation is a vital piece of crane logistics.

 

Comprehensive project management is a piece so critical that time and wherewithal are essentially eliminated from the equation when handled properly. Incorporating a network so vast and efficiently engrossed within the logistics industry positively impacts not only the bottom line of a business, but the outcome of problematic issues that are sure to arise. At the minimum, your logistics provider should have an international network, expertise in crane movements, customs requirements, and updated regulatory compliance familiarity.

 

Forecasted Expertise

 

Understanding the crane logistics industry and the nuances associated with the movement of whole machines, pieces, tariffs, fees, and networks comes down to which logistics team you chose to partner with. Strategic planning and predictive analysis are both highly regarded in terms of successful project management on an inclusive level. Avoiding disastrous situations can theoretically be avoided with thorough oversite and an extensive game plan. If this happens, then we do this. Do not leave the fate of your project up to chance. Take proper precaution and preliminary action by implementing appropriate strategy with a knowledgeable logistics partner.

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