International Air Freight Management

Nowadays, as the increasingly competitive environment, more and moreenterprises attach great importance and strengthen enterprise logistics managementfrom the strategic view, in order to promote the enterprise’s position in the marketduring the practice of developing modern logistics.Transportation is the main source of "the third profit". Transportation is toundertake large span space transfer mission, so the activity will take long time, longdistance and big consumption, its potential freight cost saving may be higher as well.From freight cost perspective, freight expenses takes the highest percentage in thewhole logistics cost. According to the general comprehensive analysis and calculation,freight cost accounted for nearly50%of social logistics cost. Some products freightcost is even higher than the product production costs. So, how to realize thereasonable goal of freight cost control for the enterprises has increasingly becomean important issue for the society to concentrate on, probe into, and put intopractice.Below will take Arrow Electronics Company as an example, will focuses on airfreight cost analysis and management, to find the air freight potential cost savingsolution.As viewed from a time dimension, this thesis is divided into three parts,including theoretical direction and logistics cost design beforehand, the3rd partylogistics service providers selection as well, and logistics activities control andshipment consolidation during the process, and performance evaluation, freightaudit and verification afterward. The combination of these three parts expands thetime range of air freight cost control.The first part puts forward the third party logistics service provider selectionmethod and the concrete implementation steps, combined with the actual practiceof enterprises to choose appropriate third party logistics service provider.The second part presents the guidance theory of logistics cost control. It forms aviewpoint of the shipment consolidation as method and approach by using the Economies of Scale Theory as guidance, to reduce the air freight cost.The third part is including air freight cost analysis and performance evaluation,and freight cost audit and verification, further reduce the air freight cost.In this thesis, through qualitative and quantitative analysis, combiningenterprise examples, brings forward the air freight cost saving solution; It alsodemonstrates the benefits brought by the air freight management and logisticsfreight cost control.