How To Choose The Best Shipping For Your Business
Analyzing the compatibility of the type of freight that the transport company such as cowtown express for instance offers with the business that needs deliveries is the first step towards success in the market. Want to know more? Follow the article.
Every business owner knows that they need to offer good products and services to satisfy their customers. But, before that, it is also necessary that he manages the business – especially costs – so that the company remains competitive.
We Highlight 2 Tips To Choose The Best Shipping For Your Business:
Regarding the responsibility for costs
CIF (An Acronym For “Cost, Insurance, And Shipping”)
Indicated for companies that sell to the final consumer through e-commerce. Because the process is simpler, it is the most used. Whoever hires this type of freight must know that the expenses are paid at the cargo’s origin. The contractor will have to handle and deliver to the end customer, and the total costs are diluted in the product’s value. In some cases, the CIF can also be indicated for business between companies, the B2B, when the seller negotiates large volumes with the transport company.
As for taxes, they are levied on the value of the freight and the merchandise value. The customer pays a single amount, representing the product price’s sum with taxes, insurance, and shipping. All of this is considered as the basis for calculating the ICMS.
FOB (Abbreviation For “Free On Board”)
This type of freight is the opposite of CIF: the buyer assumes all costs and risks of all logistical processes. This is a safe option, and payment for freight is made after delivering the cargo. It is widely used in B2B negotiations and is usually the option of buyers who have more attractive conditions to negotiate and manage transport than the seller. Taxes are specific to transportation services in this shipping option, and the value is calculated separately.
As for the shipping models
It’s the most common type. The carrier collects the goods from the sender and delivers them to the recipient. Taxes designated for the type of company regime or state legislation are applied.
When the carrier chooses not to deliver and hires another transport company such as cowtown express for instance to do so, it can be considered that this freight contracting model adds value, as it contributes to more efficient deliveries and route expansion. Some companies waive the use of the Electronic Bill of Lading (CT-e) unless required by the contracting party. There are cases where it can be issued tax-free. It is worth consulting an accountant.
This operation uses two operators to carry out the delivery. This type of freight is usually the option for optimizing delivery and reducing costs since the destination is off the usual routes.
This model is indicated when, in the same delivery, there are more than one means of transportation, such as road, rail, or air. The modality requires specific electronic documents, such as CT-e Multimodal and CT-e Linked to Multimodal. In this freight model, the carrier is generally contracted by a Multimodal Transport Operator (OTM) to perform the service in one of the appropriate modes. It is also possible to opt for intermodal transport, which uses more than one modal to complete the delivery.