INDUSTRY FOCUSPROJECT FORWARDER NETWORKS
The Worldwide Project Consortium (WWPC) gathered in Panama for its latest annual general meeting.
upsell to their clients by offering services in countries where they would not normally be able to do so, or where they may have had a weak and unreliable agent in the past.” But does joining a network result in new
project logistics opportunities? Broadening the theme further, does it assist when bidding for larger, multi-country contracts? Does it provide the small or medium-sized forwarder with a foothold to compete with a multinational project forwarder?
Feedback Haffter explained: “We know from the feedback of our active members that they are able to obtain substantial business from fellow GPLN members and therefore increase their project-related business. Also, as a network operator we provide technical assistance to our members that allows them to compete technically with the ‘big boys’. “Even though the multinationals have a
global coverage they lack specialists in most of their offices. Even the largest freight forwarders only have project and heavy lift specialists located in some key countries. So with coverage in over 100 countries, GPLN and its members do have many more specialists around the world than any multinational.” Bo H Drewsen of the CLC Projects
network said, “in some cases networks can facilitate winning larger contracts”, but simply joining a network is no guarantee of securing new work. Expanding on this point, Cutillo said: “Independent forwarders need to confidently demonstrate they have qualified partners when bidding on multi- market contracts. They need to show that they have equal or better partners compared with the multinational forwarders that they may be bidding against.”
118 January/February 2017
“However,” Cutillo highlighted, “to get
larger contracts, independents should also have an increasing number of professionally recognised certifications for quality control, human resources, security, safety and risk protection, for example, to pass the vendor selection process.” There is a perception in the wider
logistics sector that there are healthy profits to be made by handling project cargoes. This has given rise to countless companies claiming that they are capable of handling these demanding cargoes. Albert Pegg, managing director of the
Atlas Breakbulk Alliance, said: “I think companies have seen that there is little money in FCL/LCL and airfreight. But many think there is still money in project cargo. But the market is different – the risks are far higher.” Peter Bouwhuis, managing director of
Project Freight Net (PFN), was concerned with sub-standard companies that are allowed to join supposedly specialised project forwarder networks. “Too many networks are filled with freight forwarders that have little or no experience in projects and are hoping to score a project from a fellow network member… For sure there are healthy margins, but there is real expertise needed to perform a project and a lot of these so-called project forwarders do not have this.” That sentiment is shared by Jürgen
Weyhausen who is one of the founders of the Project Logistics Alliance (PLA). He says that one of the reasons for founding PLA is not to make money out of it, but because he was fed up with those networks he claims targets to have as many members as possible, without focusing on quality and the real track-records of their members.
Viktor André Fuchs, general director of
Project Partners, drew attention to the sheer number of networks in the market. “Ten years ago the only question was which network to choose out of a handful. They were all operating on a high-class level. Today, the existence of so many networks holds a certain risk – it is difficult to select the good ones. I am afraid that in general the many new networks are making it more difficult for a project forwarder to select ‘the right network’.” However, Rachel Humphrey, managing
director of the Project Cargo Network (PCN), argued that healthy competition between networks is a positive thing and generates success. “As a network owner this means you must continue to analyse your own performance. I think competition drives success and I am also confident that the cream rises to the top.”
Universal truth One universal truth shared by all those interviewed is that the quality of companies across a network is the key to its success. Accordingly, most networks claim they go to great lengths to identify companies that have suitable experience and financial security. A strong network reviews an applicant’s
history, ownership structure, registration documentation, bank and trade references, insurance coverage and project-specific case studies. Often, network heads use their extensive experience – and the knowledge of their members – to cross-reference information provided by new applicants to assess their suitability for the group. “We regularly turn away applicants who
cannot demonstrate sufficient heavy lift/project experience,” said Cutillo. Meanwhile Richard Overton, chief
www.heavyliftpfi.com
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