Freight forwarders are always looking for a way of growing their businesses, but in this domain, it is hard sometimes to receive a contract from a big company. The ones that achieve success in a rapid way are members of a freight alliance, because once their name is associated with one of a well-known brand, clients will continue to come. These networks are non-exclusive alliances, which allow their members to co-operate in a financially secure industry. This is a direct consequence of the fact that it helps them to reduce costs. In addition, by joining an alliance they have the opportunity to grow their business, because they work as a team against large multinationals. Some networks do not claim a membership fee and they offer their members a large variation of benefits.
Freight alliances have an impressive global presence and they are able to serve their clients from all the corners of the world because their members are located worldwide. They give their clients the opportunity to send their goods wherever they want. These alliances have great resources in terms of reach and size, and sometimes they can get even in places where multinationals cannot. The advantage of being part of this network is that the freight forwarder can be sure that neither of the members of the alliance is weaker than he is. All of the members go through a strict selection process before being accepted as a member and this is a main factor that influences the success of the network. The network is aware that if there is a weak link as a member, they will not be able to offer their clients the needed services. Usually, networks limit the number of agents in ports and airports, because they want to allow every one of them to grow their business. In some ports, which are extremely busy there are present more members.
When becoming a member of a network as The Cooperative Logistics Network forwarders are able to generate new businesses because they receive help from the other members. Networks function on the principle of co-operation, which makes them so effective and safe. Forwarders are able to increase their income by exchanging shipments with other members from the alliance, even if they are situated in a different location. The great fact of being a member of this type of alliance is that the name of the forwarder is associated with that of an international brand, and they will receive more shipments. Because they can promote their business by using the logo of the network, they will be able to overcome clients’ wrong ideas that an independent forwarder is not able to provide a quality service. When being associated with a big brand forwarders can obtain larger contracts, because they receive help from the other members and they know that they will be able to fulfill their commitments. The most important advantage of being part of the network is that members can join the annual meeting, which ensures them success.