Due Diligence on Agents
There is no greater care to our company than that which goes into the safe transportation of our cargo. Our reputation and our livelihood depend on the success of our shipments. The last shipment performed is the most definitive – we are defined by our successes and failures. The present shipment is the most important to us – it is the most at risk. The next future shipment is the one most prepared for – it is hoped for the most.
The management of our overseas agents can only be accomplished by due diligence. Companies and individuals naturally suffer lapses of judgment from time to time. TecLogistics knows that because of this truth, the best method of managing agents is to trust, but also to verify. We expect the best from our agents, but we prepare for less than the best by exercising due diligence, by continuing compliance programs, by coordinating processes, and by monitoring performance.
A lot of communication goes on between companies in the transportation industry. Even the largest of logistics providers needs to outsource a great deal of the work to subcontractors. Examples include but are not limited to wharfage, stevedoring services, airport handling, trucking, maintenance, recordkeeping, filing of permits, etc.
In international shipping, effective communication is key no matter whether it takes place between two branches of one company and two agencies of two different companies. How well information flows between two entities often determines the success of shipping. And just because two people share the same domain name in their email addresses, it does not necessarily follow that communication and coordination are well executed.
TecLogistics demands clear lines of communication with all of its agents and believes that the success of this system is proven on daily basis.
QUALIFICATIONS OF AGENTS
On average, we have had our agents for 5-10 years and have had multiple dealings with each through import and export experience. Some of our agents date back decades. Our European agent started doing business in 1795.
Agents must be in prequalified and prove that they are:
- In good standing in the international shipping community and
- In good standing relative to their own national commercial base in terms of credit, performance, reputation, etc.
TecLogistics manages the shipping of its customers throughout the entire process with the use of our systems to avoid even the appearance of any possible shipping or FCPA violations.
TecLogistics leaves as little to chance as possible. Too many things are bound to go wrong in international shipping. To that end, we have instituted well-established guidelines for conducting business between TecLogistics and its agents, and between TecLogistics and its subcontractors.
Annually TecLogistics and its partners share information regarding the processes for the compliance and production of documents – what elements are used, what terminology is meant, what language and nomenclature is employed. Shipping documentation requirements vary from year to year and from country to country. This annual review thoroughly and comprehensively addresses all changes in shipping document regulations so that they may be addressed proactively.
Additionally, we formulate our own shipping process that details where each company does its own part, how it initiates and finishes that part, how a partner party takes over to perform the next part in the process. We share this on a regular basis with our overseas partners.
Any agent who fails to abide by these standards, or who fails in the performance of services, risks the integrity of the partnership. Of course, TecLogistics cannot expect 100% success rate in managing the complexity of supply chain fulfillment. Still, TecLogistics does expect that itself and its agents will pursue perfection.