Business, 27.08.2019 07:30 ccarwile01

Often small companies have problems with shipping costs because they cannot supply a shipment large enough to use an intermediary such as a railroad. however, they can often get good rates by using a distribution specialist called a which puts many small shipments together to create a single large one that can be transported cost-effectively by truck or train.

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The term that best fits the blank above is FREIGHT FORWARDER. When we say freight forwarder, this is either an individual or an organization which deals with the shipment of products to or from the producers and market. This is made possible by using trucks or trains or other modes of transportation.

Answer from: shelley3135

Often small companies have problems with shipping costs because they cannot supply a shipment large enough to use an intermediary such as a railroad. However, they can often get good rates by using a distribution specialist called a freight forwarder:

Further Explanation:

Freight forwarder:

Freight forwarder is an intermediary party between the supplier and the transportation entity. Freight forwarder does not transport the goods personally, they setup and organize the whole transportation process. They get the information from the supplier and the size of the product, destination and other related information, then they use their expertise skills to find out the best transportation type as per the client’s requirement.

Small companies do not bulk order and they face problem to contact to the shipping agencies because these agencies do not prefer small packages or charges heavily for transporting the goods. Therefore, these small companies use freight forwarder to supply their goods. Freight forwarder collects the goods from small companies and makes a large shipment, then contacts a shipping agencies and take their help to supply the products.

Small companies do not have to pay unreasonable cost for the transportation of the goods and the freight forwards earns commission by taking many orders from small companies.

Learn more:

1. Learn more about the law of demand and supply

2. Learn more about the effect on demand

3. Learn more about the demand and supply

Answer details:

Grade: Senior School

Subject: Business Studies

Chapter: Supply Chain

Keywords:small companies, shipping costs, supply, shipment large, enough, intermediary, railroad, good rates, distribution specialist, puts, small shipment, together, create a single, large one, transported, cost-effectively, by truck or train.

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