The interim supply chain manager & transport

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The interim supply chain manager & transport

A logistics challenge, lack of time or capacity combined with urgency, then the interim supply chain manager or logistics manager quickly comes into the picture. Recruiters are often used to search for interim supply chain professionals, who advertise vacancies or approach freelancers in their network. Quickly finding a new force that can start to solve your challenge. In this blog, we explain why an interim supply chain manager is often not the ideal solution when your project is related to transport or transportation costs.

Let’s start by listing some benefits of an interim supply chain manager:

interim supply chain

Temporary expertise

An interim supply chain professional brings very specific knowledge and experience in the field of supply chain management. Interim managers or freelancers have often seen many different projects at various companies, thus possessing broad knowledge of supply chain processes.

Flexibility

Hiring an interim supply chain manager offers flexibility to organisations. They can be deployed for a specific period or project, allowing companies to quickly respond to changes in market demand or business conditions without overburdening permanent staff. The latter ultimately affects other tasks.

Quickly available

Interim professionals are accustomed to getting started quickly. They have experience in different organisations and can adapt to new environments rapidly. This enables a swift implementation of improvements or solutions within the supply chain.

supply chain interim managerObjectivity and fresh perspective

An interim supply chain manager brings an external and objective view of an organization’s supply chain processes. They are capable of quickly identifying inefficiencies and bottlenecks that may be overlooked by internal employees who have developed a form of tunnel vision due to daily routines.

Knowledge transfer

In addition to executing tasks and projects, interim supply chain professionals can also transfer knowledge and expertise to internal employees. This helps build capacity and enhance skills within the organization.

Cost savings

Hiring an interim professional can be more cost-effective than hiring a permanent employee. Organisations do not have to enter into long-term employment contracts and can limit costs to the specific period in which the interim professional is needed. Interim professionals are accustomed to quickly adapting to a new organization and, as a result, become productive faster.

Transportcosts and supply chain management

But what if you are facing a challenge that involves transportation costs? Is the interim supply chain manager still an ideal solution? The question to be asked is whether the professional has the right tools at their disposal. Analysing freight costs is highly complex. It often involves extensive shipment data, different ways of calculating the basis for charged rate (load meters, kilograms, cubic meters), complex rate tables with various weight and postcode scales, surcharges, and many fine print details. Most interim supply chain managers do not have their own software, so companies need to ensure that the right software applications are available within the company to enable the interim professional to excel and achieve the desired goals.

Are you looking for an expert with time, knowledge of transport, the market, and the right software applications to perform complex analyses? Then you’ve come to the right place with Transinnovate! Feel free to contact us.

50 tips on how to save 30% on transportation costs immediately.

 

Looking to gain more knowledge in optimizing or managing transportation? In our transport guide, we provide you with:

  • Tips for immediately saving costs on your current transportation.
  • A wireframe to help you gain control and insight into your current transportation data per shipment.
  • Insights into knowledge and developments within the transportation industry.

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FAS Incoterm® (Free alongside Ship)

What is FAS Incoterm®?

FAS (Free Alongside Ship) is one of the official Incoterms®2020 rules published by the International Chamber of Commerce (ICC). It applies exclusively to maritime transport and means that the seller is responsible for delivering the goods alongside the vessel at a named port of shipment. At this point, risk and cost transfer from the seller to the buyer.

Incoterms® are globally standardized trade terms that define who is responsible for transportation, costs, and risk during international shipping. The latest version, Incoterms® 2020, came into effect on January 1st, 2020.

An overview of all incoterms is available here.

Incoterms 2020 responsibilities

 

The Free Alongside Ship (FAS) Incoterm is an international trade agreement that is used for transport by water. In an FAS arrangement, the seller is responsible for delivering the goods to a named port, placing them alongside the vessel. The transfer of risk and cost occurs when the goods are alongside the ship and ready for export.

Advantages FAS Incoterm®

Clear Transfer of Risk

FAS provides a clearly defined point where responsibility transfers from seller to buyer: when the goods are placed alongside the vessel. This reduces the risk of misunderstandings or disputes.

Buyer Controls the Main Transport

Once goods are alongside the ship, the buyer takes over transport arrangements, which allows them to choose their preferred carrier, shipping schedule, and potentially negotiate lower freight rates.

Widely Applicable in Maritime Trade

FAS is particularly suitable for bulk cargo and large-volume shipments where the buyer has experience managing ocean freight or prefers to control logistics beyond the port of departure.

Drawbacks FAS Incoterm®

Limited Seller Responsibility

The seller’s responsibility ends before the goods are loaded onto the ship. If damage occurs during loading or the main transport, the buyer bears the risk and must handle insurance or claims.

Early Risk Transfer

Risk transfers to the buyer at the port, not after loading or departure. If the goods are damaged after being placed alongside the ship but before loading, the buyer is still responsible.

Risk of Disputes

Disagreements may arise if the loading process is unclear or if issues occur during shipping. It’s crucial to define in the contract who handles loading, inspections, and documentation.

Example of FAS in Practice

A wine producer in France sells bulk wine to a distributor in the United States. The agreed Incoterm is FAS – Port of Marseille.
The seller delivers the wine in barrels to the Marseille port and places them alongside the vessel. From that moment, the buyer handles the loading, sea freight to New York, and customs clearance.

 

Summary Free alongside Ship

  • Transport Mode: Maritime (sea or inland waterway only)

  • Seller Obligation: Deliver goods alongside the ship at named port

  • Buyer Obligation: Handle loading, main carriage, insurance, import

  • Risk Transfers: When goods are placed alongside the ship

  • Best For: Buyers who want control over ocean freight and logistics

In summary, FAS provides a clear transfer of risk and is suitable for buyers seeking control over transportation logistics. However, sellers have limited responsibility after the goods are placed alongside the ship. Careful communication and a well-drafted contract are essential to ensure a smooth FAS transaction and avoid potential disputes.

Do you frequently require goods to be transported in short sea of ocean freight, either as seller or as buyer? If you would like to discuss which Incoterms® and transport solution fit best to your case, 

Need Help Choosing the Right Incoterm®?

Do you frequently import or export goods via sea freight?
Are you unsure which Incoterm best suits your business?

Contact our logistics experts for personalized advice on Incoterms® and optimal transport solutions.

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