The Benefits of Becoming a Known Shipper in the Supply Chain

As a shipper in the supply chain, there are numerous benefits to becoming a known shipper. Being a known shipper means that the airline or carrier has pre-approved your company as a trusted entity with proper security procedures in place. This status not only improves your shipping rates, but also offers added advantages in terms of security, cargo screening requirements, and customer satisfaction. In this article, we will explore what being a known shipper entails, how to become a known shipper, and the advantages of holding this status.

What is a Known Shipper in the Supply Chain?

A known shipper is an entity that has been authorized by an airline or carrier to ship their cargo after undergoing a screening process to ensure that their cargo is safe and poses no security threat. Airlines, in particular, must abide by strict regulations to ensure that the planes and passengers are not at risk of harm from hazardous materials. As such, airlines must screen all cargo before it can be loaded onto the plane. Being a known shipper ensures smoother and quicker shipping processes, as your cargo does not need to undergo additional screening before being loaded onto the plane.

However, becoming a known shipper is not an easy process. The entity must go through a rigorous screening process, which includes background checks, security audits, and inspections of their facilities. The entity must also have a good track record of complying with security regulations and must maintain a high level of security in their operations.

Once an entity becomes a known shipper, they must continue to maintain their security standards to keep their status. Failure to comply with regulations or security breaches can result in the revocation of their known shipper status, which can cause delays and additional screening for their cargo.

How to Become a Known Shipper in the Supply Chain

The process of becoming a known shipper varies depending on the carrier and the country of origin. Typically, there are a few steps that you must take to be approved as a known shipper:

• Register with the carrier
• Provide evidence of a secure supply chain process and background information about your company
• Undergo a vetting process by the carrier to ensure that your company is a trusted entity with proper security procedures in place
• Pass a cargo screening process to ensure that your cargo poses no security threat

Once approved, you will be added to the carrier’s list of known shippers, which means that your cargo will be eligible for expedited shipping.

It is important to note that being a known shipper also comes with added responsibilities. As a known shipper, you must ensure that your cargo is properly packaged and labeled, and that all necessary documentation is provided to the carrier. Additionally, you may be subject to random security checks to ensure that your cargo remains secure throughout the supply chain.

The Role of Known Shippers in Supply Chain Security

One of the primary reasons for becoming a known shipper is to ensure a secure supply chain. Airlines and carriers must ensure that all cargo is screened before being loaded onto a plane to prevent potential threats to the safety of the aircraft and the passengers on board. This is where known shippers come in. Known shippers have already undergone a screening process and have been certified by the carrier as a trusted entity with proper security procedures in place. This means that their cargo does not need to undergo additional screening before being loaded onto the plane. Being a known shipper not only expedites the shipping process but also helps to maintain the overall safety and security of the supply chain.

In addition to the benefits of expediting the shipping process and maintaining supply chain security, becoming a known shipper can also lead to cost savings. Known shippers are often eligible for discounted rates and other incentives from carriers due to their trusted status. This can be especially beneficial for businesses that frequently ship large volumes of cargo.

However, it’s important to note that becoming a known shipper requires a significant investment of time and resources. The screening process can be rigorous and may involve background checks, site visits, and other security measures. Additionally, known shippers must maintain their security procedures and certifications to continue their trusted status. Despite these challenges, many businesses find that the benefits of becoming a known shipper outweigh the costs.

Advantages of Being a Known Shipper in the Supply Chain

There are numerous advantages to being a known shipper, including:

• Expedited shipping processes
• Priority access to carrier capacity
• Better shipping rates
• Lower risk of cargo delays
• Increased trust and credibility with carriers and customers
• Better allocation of resources and capacity

Becoming a known shipper can also help to improve your overall supply chain efficiency and streamline your shipping processes.

Another advantage of being a known shipper is the ability to receive preferential treatment during times of high demand or capacity constraints. Carriers are more likely to prioritize known shippers over unknown shippers, which can help ensure that your cargo is delivered on time and without any issues. Additionally, being a known shipper can provide access to exclusive carrier programs and services that may not be available to other shippers.

Risks of Not Being a Known Shipper in the Supply Chain

Not being a known shipper can come with several risks and disadvantages. If your cargo has not been screened and certified before being loaded onto a plane, it may be subjected to additional screening processes, which can delay the shipment and increase costs. Additionally, airlines may be less willing to allocate capacity and resources to unknown shippers, which can lead to difficulties in finding available shipping options. Being a known shipper can help to avoid these potential issues and ensure a smoother shipping experience.

Another risk of not being a known shipper is the potential for security breaches. Without proper screening and certification, there is a higher risk of unauthorized items being included in the cargo, which can pose a threat to the safety of the plane and its passengers. This can result in serious consequences, including fines, legal action, and damage to the reputation of the shipper. By becoming a known shipper and following the necessary security protocols, these risks can be minimized and the safety of the cargo and everyone involved can be ensured.

How Being a Known Shipper Can Improve Your Shipping Rates

Becoming a known shipper can lead to better shipping rates, as carriers are more likely to offer preferred pricing to trusted entities with proper security procedures in place. This is because airlines and carriers typically have limited capacity, and they want to ensure that their resources are being allocated to entities that pose the least risk and are the most reliable. As such, being a known shipper can help to improve your shipping costs and overall supply chain efficiency.

In addition to better shipping rates, being a known shipper can also provide other benefits. For example, known shippers may have access to expedited shipping options, which can be particularly useful for time-sensitive shipments. Additionally, known shippers may have more flexibility in terms of scheduling pickups and deliveries, as carriers may prioritize their shipments over those of unknown entities.

However, becoming a known shipper requires meeting certain security requirements, which can vary depending on the carrier. These requirements may include background checks, facility inspections, and employee training programs. While these measures can help to improve supply chain security, they can also be time-consuming and costly for businesses. As such, it’s important to carefully weigh the benefits and costs of becoming a known shipper before pursuing this option.

The Process of Being Approved as a Known Shipper by Airlines

The process of being approved as a known shipper varies by airline and can involve different steps depending on the country of origin. Generally, you will need to register with the airline, provide information about your company, and undergo a vetting process to assess the security procedures that you have in place. You may also be required to pass a cargo screening process to ensure that your cargo poses no security threat. Once approved, you will be added to the airline’s list of known shippers, which qualifies your cargo for expedited shipping processes and access to preferred pricing.

How to Maintain Your Status as a Known Shipper in the Supply Chain

Maintaining your status as a known shipper requires ongoing efforts to ensure that your security procedures remain up to date and meet the standards of the airline or carrier. You may be subject to periodic reviews and audits to ensure that your security procedures are being maintained and that your cargo continues to be safe. By maintaining your status as a known shipper, you can continue to benefit from expedited shipping processes and access to preferred pricing.

Known Shippers and Cargo Screening Requirements

As a known shipper, your cargo has already undergone a screening process to ensure that it poses no security threat. This means that your cargo does not need to undergo additional screening before being loaded onto a plane. However, it is important to note that cargo screening requirements can vary by country and carrier, and it is essential to stay up to date on the latest regulations to maintain your status as a known shipper.

The Impact of Being a Known Shipper on Customer Satisfaction

Becoming a known shipper can improve customer satisfaction by providing expedited shipping processes, better allocation of resources and capacity, and more reliable shipping options. Additionally, being a known shipper can increase your trust and credibility with customers, which can help to build long-term relationships and improve your overall reputation in the industry.

The Importance of Trust and Credibility as a Known Shipper

Being a known shipper means that you have been certified by the airline or carrier as a trusted entity with proper security procedures in place. This designation is important because it can help to build trust and credibility with carriers and customers alike. By demonstrating that you have implemented proper security procedures and have been vetted by the airline or carrier, you can establish yourself as a reliable and trustworthy entity within the supply chain.

Examples of Companies That Have Benefitted from Becoming a Known Shipper

Many companies have benefitted from becoming a known shipper, including large corporations and small businesses alike. By being certified as a trusted entity, companies can improve their shipping processes and access preferred pricing, which can help to improve their overall supply chain efficiency and profitability.

In conclusion, becoming a known shipper can provide numerous benefits for shippers in the supply chain. By undergoing a screening process and being certified as a trusted entity, you can streamline your shipping processes, access preferred pricing, and improve your overall supply chain efficiency. For those who frequently ship goods, becoming a known shipper is an essential step in remaining competitive and maintaining a reliable reputation in the industry.