|
 |
Behind the scenes - AIT's International Partner Network
It's common industry knowledge that a global logistics provider's international product is only as strong as its global network. In transporting commodities around the world, you must rely on partners and agents along the international logistics plan you have crafted for your customer.
Therefore, it's imperative that AIT cooperates with quality organizations around the world that consistently offer high-quality global services and maintain business philosophies and core belief systems aligned with our own.
AIT accomplishes this difficult task by forming developmental partnerships with like-minded companies that have built similar corporate cultures in their own respective markets.
I'd like to give you a behind-the-scenes look at the process involved in choosing, measuring and maintaining international agents within our global network.
There are 5 significant elements that distinguish and define an AIT international partner:
- In order to ensure a consistent and dependable, high-quality service at the foreign port of origin or destination, AIT will only consign and route cargo through primary partners.
- AIT has entered into a significant financial agreement with our primary partners whereby we exchange considerable amounts of financial data, exchange invoices via monthly contra statements and work on a profit share basis.
- AIT and its primary international agent's network are supported by a written code of ethics which serves as the backdrop to sound international cooperation. We expect all employees and agents to use only legitimate practices in commercial operations when promoting AIT's position. The code of ethics document covers such topics as FCPA (Foreign Corrupt Practices Act), non disclosure agreements, security procedures and periodic reviews.
- AIT will only exchange sales and marketing intelligence with its primary agent community and commit resources to only these companies in order to develop future international business.
- AIT provides its primary partners preferred pricing on USA origin and destination charges and in turn receives discounted pricing in the agent's local markets, demonstrating shared commitments to the development of our business relationship.
What is the selection process involved in choosing an International Partner?
Once we have identified a company as a potential candidate, we request they complete a lengthy market questionnaire identifying their multi-modal air, ocean and ground capabilities. They must demonstrate a significant local market presence in their home country in terms of FOB / DDU charges, air and ocean buying power. They must also be considered best in class for their market. Finally, the company cannot currently maintain an exclusive relationship with another USA based forwarder or logistics provider.
It's our policy to conduct site inspections on our primary partner's corporate headquarters in an effort to fully understand and appreciate the corporate culture in which they conduct their business. In some cases, we offer to host a meeting at AIT corporate offices and extend an invitation to the company officers to participate.
It is essential for AIT's product directors to have in-depth face-to-face meetings with the respective air and ocean directors of our partners to discuss and explore important issues including communications channels, points of contact and general service expectations. If these face-to-face meetings are not possible, a conference call will be substituted.
In some cases where it is not possible for us to visit our agent's facility and they are not able to visit ours, we may request the support of local US Embassies in certain high-risk markets to assist with background checks on individuals and the company in general.
Lastly, we obtain specific financial information necessary to make prudent and well-informed decisions on limiting our monetary exposure.
How does AIT measure Partner's performance?
We measure our partner's quality performance on a semi-annual basis on the following quantitative criteria:
- Assess the number of operational irregularities recorded into our international operating system during a 6-month period. All cargo delays caused by errors or omissions on the part of our international agent are coded on a shipment-by-shipment basis.
- Evaluate the timeliness and accuracy of our partner's accounting processes in terms of providing AIT with correct invoices and payments in compliance with the various terms, conditions and guidelines we have set for them.
- Appraise the amount of new business opportunities generated between our partner's countries year over year, by the quantity and quality of sales leads developed during the 6 month period.
- Consider how well they have followed up on the sales leads AIT has generated for them.
How does AIT maintain its International Partner Network?
We maintain our international partner network through a process of improved operational connectivity, ongoing ethics training and frequent corporate visits.
AIT has made an important investment in improved operational connectivity with the creation and implementation of its International Agents Service Center (IASC). The IASC is an application designed to provide our agents origin and destination pricing in addition to giving them access to approve invoices and update operational status codes. Our in-house IT team is currently working on incorporating EDI transmissions from our partners into the system to enhance and optimize our operational performance.
AIT also offers ongoing ethics training to our agents focused on FCPA issues online via seminars conducted by our corporate operations department.
Finally, there is no substitute to building and maintaining long term, mutually beneficial international partnerships than through face-to-face meetings either at AIT's corporate offices just outside of Chicago or at our partner's headquarters around the world. Creating relationships ascribed by personal trust, commitment, confidence and service excellence is essential in achieving that competitive edge to meet and exceed our customer's transportation requirements.
We at AIT are proud of the substantial progress we have made in advancing our global network, and we're confident that together we can provide the best industry resources and services to handle the international transportation needs of your business.
If you should have any questions or require additional information on AIT's global network, don't hesitate to contact me directly.
If you have any questions or comments regarding the Partner News eNewsletter,
please contact Larry Georgen, Manager Global Network. |
|
Back to top