The Importance of Understanding Your Freight Boarding Costs

To remain competitive in the global aerospace supply industry, suppliers must be able to view and understand freight boarding costs. From our experience, we have found that suppliers typically fall into these categories:

  • No visibility of costs, therefore no understanding
  • Visibility of costs, but no understanding
  • Visibility and understanding

To reach the ideal category of having visibility and understanding of freight boarding costs, suppliers must first be able to gather together critical pieces of information throughout the supply chain. Yet, it’s not enough to just gather the information.

There are many different factors that impact the final cost, which points to the need to be able to drill down to understand transportation costs at the SKU level. When you achieve this level of understanding, you can set internal pricing guidelines, adjust transportation costs based on the variables of weight and dimensions, and take into account the origin, destination points, and urgency of delivery.

How Does Achieving Visibility Reduce Freight Boarding Costs?

Aerospace suppliers know that disruptions and risks come with the territory of operating on a global scale. To offset these risks, take a proactive approach. Use the information from your supply chain to make plans that account for disruptions.

Why? Production and delivery schedules can only be met with proper planning and visibility in the supply chain. Having visibility throughout the process allows for adjustments in planning and sourcing so that disruptions can managed.

The key is embedding flexibility and adaptability into your supply chain so that you are not at the mercy of disruptions. However, it’s not enough to only view the information in your supply chain. You need to be able to understand where costs are coming from, the causes of unnecessary or rising costs, and the risk areas in your supply chain.

A common risk for aerospace suppliers is choosing a “cheap” carrier for delivery, believing that it’s worth the risk of pinching a corner to offset another cost. Penalties due to delays will quickly offset any savings provided by using the “cheapest” carrier.

Who Can Help You Achieve Understanding of the Supply Chain?

Simply put, the freight invoice is only a portion of the landed cost of transportation. If you cannot achieve understanding of where the other portion of costs is coming from, you will quickly incur unnecessary costs. This often leads to reactive decisions to cut costs elsewhere, such as choosing a “cheap” carrier for delivery.

Freight forwarders such as Aerostar Global Logistics have their finger on the pulse of challenges along transportation lanes to help suppliers achieve understanding. We are consultative in our approach to deliver options that maximize cost savings while reducing risks.

One of the ways that we help aerospace suppliers reduce their costs is through on-time performance. This is backed by our 98.8% on-time performance delivery rating.

Our history of success and total commitment to delivering complete and on-time is why customers choose us for freight forwarding. We have flexibility in our service offerings and certainty in our performance. That’s why our reputation rides with your cargo™.

Contact us today to discuss a global freight forwarding solution to meet the domestic and international needs of your aerospace supply business.

Logistics Risk Management Plan: How to Mitigate Risk in the Aerospace Supply Chain

Suppliers in the aerospace industry know there are inherent risks that come with operating on a global scale. You could try to create a massive plan to manage every possible risk in the supply chain, but the cost would be equally massive, creating financial risk.

Instead, consider how to create a smart logistics risk management plan that puts your company in a position to balance cost vs. risk factors without compromising your operation and customer relationships.

1. Identify Your Predominant Logistical Risk Factors

Every aerospace supplier needs to strategize a unique risk management plan. No two suppliers are alike in terms of their size, location, product, or capabilities. Therefore, you need to take time to assess the risk factors specific to your operation.

Risk factors for suppliers include:

  • Meeting the on-dock date for your customer
  • Delivering your product without damage
  • Completing last-mile delivery

Then, you need to identify what the typical causes of these risks are. The common ways that risks present themselves in the supply chain include:

  • Production delays
  • Carrier delays
  • Space allocation constraints with the carrier
  • Non-supplier related disruptions

Take inventory of your operation — both the risk factors and the causes of risk that apply directly to your company.

2. Strategize a Solution to Mitigate Risk

After assessing the risk factors that apply to your operation, develop a risk management plan to address issues throughout your global supply chain.

Where should you start? Proper forecasting. You need to leverage your data and the industry trends to proactively plan for each risk. You cannot rely on a reactive approach trying to scramble your resources to solve a problem or meet a tight deadline. It’s highly inefficient and costly over time.

Starting with forecasting will also allow you to build resilience and flexibility into supplier partnerships. A harmonious working relationship will reduce the presence and impact of risks in the supply chain.

Proper planning also allows for a transit time that utilizes low-cost transportation methods. When you plan ahead, you can deliver on-time at the lowest possible rate instead of adding significant costs for faster delivery.

3. Work With a Logistics Partner to Support Your Risk Management Plan

We recognize that aerospace suppliers are under a tremendous amount of pressure trying to balance cost and risk factors to meet deadlines and deliver on quality.

Our company offers superior service by shipping products through the most complicated and risk-filled global supply chains. We deliver certainty with a 98.8% on-time performance rating.

To achieve this performance rating, we follow a strategic approach that includes:

  • Participating in forecasting for aerospace suppliers
  • Offering multiple transportation options to manage velocity and cost in the supply chain

Through this collaborative effort, we help suppliers identify and anticipate risks before they materialize and to help control costs.

Work with our knowledgeable and experienced team to develop a logistics risk management plan that fits your operation. We look forward to delivering your supply domestically or internationally on-time and without damage. Because our reputation rides with your cargo™.

Contact us today for a Rate Request.

Aerostar Global Logistics Expands Transportation Management Capabilities

Aerostar Global Logistics, a leader in international freight forwarding and domestic shipping solutions for the aerospace supply chain, announced the acquisition of Professional Freight Solutions (PFS), located in metropolitan Detroit. This latest acquisition will support all of Aerostar’s aerospace and other specialty customers in North America.

Aerostar acquired PFS at a time when the aerospace supply chain is demanding more and more services for fully-integrated freight management, supply chain optimization, rate negotiations, inbound vendor management and audit services.

The addition of PFS and its experienced employees will enable Aerostar to more effectively service its growing customer base by handling ocean import/export, air import/export, drayage, LTL, truckload, warehouse storage, order fulfillment, kitting, and full-service supply chain management.

“As our customers continue to consolidate their vendors and their logistics spend, they increasingly seek customized solutions for all modes of transportation,” said Tom Gioia, Aerostar’s chief executive officer. “The addition of PFS bolsters our capabilities in LTL and truckload end markets, enhancing our ability to provide a complete suite of logistics services.”

“We are pleased to partner with a premium logistics company like Aerostar,” said Mark Hebden, founder of PFS. “We look forward to continuing to offer our unique brand of customer service as part of an experienced, global logistics provider.”

Aerostar is committed to delivering premier service and resources to the global aerospace supply chain. Strategically co-located near airports and major origin/destination points for customers, Aerostar provides a variety of storage, warehousing and distribution services to handle each stage of fulfillment for customers’ cargo – regardless of whether the ultimate destination is in U.S., Europe or anywhere else in the world.

Aerostar Global Logistics Expands to Greater Los Angeles

Aerostar Global Logistics Expands to Greater Los Angeles

Company increases its warehousing and fulfillment to support growing consumer demand in L.A.

CHICAGO, IL – May 19, 2017 – Aerostar Global Logistics, a leader in international freight forwarding and domestic shipping solutions for the aerospace supply chain, announced the acquisition of Tatum Logistics and its approximately 100,000 square feet of warehouse space in greater Los Angeles, California. The new facility, strategically located near the ports of Los Angeles, Long Beach and LAX international airport, will support Aerostar’s aerospace and other specialty cargo customers.

Aerostar is expanding to Los Angeles to facilitate growth at a time when the company is seeing increasing demand from aerospace customers in the greater Los Angeles market, as well as increased need for services from customers utilizing the ports of Los Angeles and Long Beach. The expansion and configuration of Aerostar’s new facility enables the company to more effectively service its growing customer base by handling ocean import/export, air import/export, drayage, storage, order fulfillment, kitting, and full-service supply chain management on the West Coast.

The company is committed to delivering premier service and resources to the global aerospace supply chain. Strategically co-located near airports and major origin/destination points for their customers, Aerostar provides a variety of storage, warehousing and distribution services to handle each stage of fulfillment for customers’ cargo – regardless of whether the ultimate destination is in U.S., Europe or anywhere else in the world.

“Our customers have been asking for Aerostar’s special brand of hands-on, customized solutions in Southern California for some time,” said Tom Gioia, Aerostar’s chief executive officer. “This new location in Los Angeles puts us right where our customers need us, in a new facility equipped to handle all of our customers’ needs.”

About Aerostar Global Logistics

Aerostar Global Logistics is a comprehensive logistics service provider offering a full suite of international freight forwarding and domestic shipping services, global warehousing solutions, quality assurance programs and& fulfillment platforms for the global aerospace supply chain. In addition to our core aerospace vertical, Aerostar provides value-added services to other end-markets – such as heavy industrial products, healthcare/medical devices, sporting ammunition and other hard-to-ship products – where the customers require Aerostar’s unique brand of customized solutions and high-touch customer service. www.aerostarglobal.com

Aerostar Global Logistics Provides High-Touch Suite of Services

Aerostar Global Logistics Provides High-Touch Suite of Services

Originally posted on Manufacturing TodayAerostar Global Logistics carved out its niche in the aerospace industry by offering a full suite of international and domestic transportation and logistics services complemented with unparalleled customer service. “We compete with some of the largest companies in the world and beat them every day,” CEO Tom Gioia says. “The way we do that is our absolute obsession with customer service, understanding delivery demands that airlines and OEMs have and providing constant communication to our customers.”

The company is based in Lombard, Ill., a suburb of Chicago, but has opened offices in Dallas, France, Germany and the United Kingdom to remain an international leader. Gioia is part of Aerostar’s new management team brought on in mid-2016 to focus on growth and expansion, not just in the United States but worldwide. “They hired me to come in and grow the customer base and locations, expand opportunities for employees and hire more people to facilitate that growth,” Gioia adds.

As more manufacturers begin to consolidate their supply chains, Aerostar prides itself on being the company that can handle all their logistics needs. “As manufacturers are consolidating facilities and vendor bases, they need partners that can satisfy their requirements worldwide, hence our growth and expansion into different geographic areas,” Gioia says. “The company was originally a freight forwarder and now offers air, ocean, rail, trucking, warehousing, customs clearance, product inspection and quality assurance for our customers. We truly offer a full suite of value-added logistics.”

Suite of Services 

Over the past few years, Aerostar has begun offering a full suite of logistics services to its customers. “It is our consistent strategic vision to combine all offerings for every customer,” Gioia explains. “We were doing international shipping for one customer, domestic for another and warehousing for another customer. We’ve shifted to a one-stop shop. Now we execute on-time delivery for complicated supply chains in the most demanding industry – every day.”

AerostarInfo

Aerostar is reintroducing its services to the market as manufacturers consolidate vendors and their supply chains. The company is also adding salespeople to enable the company’s growth. “Customers used to be secured in the past by word of mouth and reputation,” Gioia explains. “Now we’re ready to compete at scale.” 

New opportunities came when companies needed to get out of a difficult situation, which left Aerostar to react. Industry peers would refer those companies to Aerostar when they needed to meet a tight delivery deadline, get a product released from customers or save money, for example. “We did a great job and built an ongoing relationship,” Gioia says. “We were much more reactive. Moving forward, we will be more aggressive and solicit customers to be proactive.”

Case-in-point, Aerostar recently hired Terrence Brown, an industry veteran from one of the 10 largest freight forwarders in the world, with a specific focus on aerospace. Gioia is confident Brown will be a huge coup for the company. “It validates our strategy,” he adds. “We are going to market and saying we are the specialist in the aerospace supply chain, dedicated to delivering on expectations with a commitment to customer service. We are a high-touch, customer service focused logistics provider and have carved out a niche in the aerospace supply chain; so much so that much larger companies have taken notice of who we are. The addition of Terrence is proof of the fact that the industry believes there is a need for specialists and Aerostar is ready to meet those specialized needs.”

To provide a full suite of services, Aerostar implements leading-edge and best-in-class third-party software to ensure it has the most up-to-date programs. “The industry as a whole is still in the 20th century when it comes to technology, and transportation is one of the last industries out there to see major innovation,” Gioia says. “Big data and analytics are becoming available to smaller companies, so we are bringing people in and hiring people with experience in those fields who understand the value of data and what I can offer to our customers.”

Aerostar is not only an expert in moving products, but also provides information to its customers that results in higher-touch customer service. “We deliver information as much as we deliver products, which is why people use Aerostar,” Gioia adds.

Strong Relationships

Aerostar has been a value-added partner to Zodiac Aerospace’s Gainesville, Texas-based seat facility for 20 years. “We consider them a partner and they consider us to be a critical partner in their supply chain,” President Serge Bernard says. “That’s why we have co-located next to their facility and have relationships across all levels of the company.”

Zodiac Aerospace prides itself on its on-time delivery rate, which Bernard says is supported by Aerostar. “We are their provider to make sure they have 100 percent on-time service and that’s been our track record with them for the past seven to eight years,” he adds. “We move heaven and Earth to make sure they meet their delivery schedule while providing them with solutions that are cost-effective.”

Aerostar is always looking to add value. “We have offered our services and expanded our facility in Dallas to try and offer Zodiac more space and service for warehouse and distribution,” Gioia says. “We sit down with leadership to focus on driving cost out of the supply chain and demonstrate the value in working with one partner for all their needs.”

Moving forward, Aerostar plans to continue focusing on the aerospace industry, which represents 70 to 80 percent of its business. The remaining percentage will target automotive, healthcare and other hard-to-handle goods, which Gioia says fits right into the company’s strategy.

“The goal we have is for our company to quadruple in the next three to five years and we will do so through our sales force, strategic investments and targeted efforts to grow in the aerospace supply chain and any other industry that has the same demanding customer service needs,” Gioia adds. “The aerospace industry is counting the minutes that something needs to be delivered just in time. If we can satisfy aerospace, we can handle and do handle automotive, healthcare and other specialized products like sport ammunition. If someone has hard to handle products and not everyone can ship them, we have people on staff who are product experts and who can get the job done.”

Author: Janice Hoppe-Spiers

OLD – Aerostar Global Logistics Provides High-Touch Suite of Services

Originally posted on Manufacturing Today: Aerostar Global Logistics carved out its niche in the aerospace industry by offering a full suite of international and domestic transportation and logistics services complemented with unparalleled customer service. “We compete with some of the largest companies in the world and beat them every day,” CEO Tom Gioia says. “The way we do that is our absolute obsession with customer service, understanding delivery demands that airlines and OEMs have and providing constant communication to our customers.”