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All content following this page was uploaded by Kaan Aydin Ataoglu on 12 October 2015.
September / 2015
Abstract
Master`s thesis in Logistics and Supply Chain Management
Title: The Fundamental Roles of Freight Forwarder in the Execution of
International Logistics
Author: Kaan Aydin Ataoglu
Tutor: Christine Lloyd
Date: 01.10.2015
Keywords: Freight forwarder, International Logistics, Custom Clearance,
Competitive advantage, Warehousing and Consolidation.
Method: The study is considered as qualitative a case study, but the numerical data is
collected from the interviews in order to calculate transport expenses and used as
quantitative by the abductive research method to take the advantage of the real-business
observations. Secondary is retrieved from the research, report and publications.
Globalization affects all sectors deeply and sharply, the global logistics sector has
utilization of global sourcing. Hence, these structural changes enabled global logistics
firms to set up new a customized logistics service provider which is named as freight
custom clearance, delivering and insurance for manufacturer firms in the execution of
or another companies in order to make transport organization safe, efficient and cost-
effective shipping (Ciltuk.org.uk, 2015). From this perspective, the main roles of freight
circumstances. Murphy and Daley (1996) said that the most firms employ international
Nowadays, the manufacturer companies still continue to export their produced goods
all over the world and import some unique raw material from another countries
therefore transporting goods from one country to another country underlines much
emphasis at the shipping activities and capabilities which have fairly significant for
The purpose of this research is to integrate the fundamental roles of freight forwarder
on a case study in order to investigate and identify, and illustrate its impact on the
custom clearance transactions have huge impact on the transport expenses while
order to satisfy customers and industry expectation with their multimodal transport
logistics and supply chain activities (Knigge, 2015). This is to say, cooperating with an
2003);
establish relationships and liaisons with supply partners, both internally and
externally
improve trade volume
transport solutions
In addition, efficient multimodal transport network capabilities refer an ability for freight
the integration of multi model transport systems mean that the systematic coordination
of all logistics activities enable manufacturer firms to reduce their transport expenses,
utilize the network to fulfil manufacturer firms’ requests in a timely way and provide
forwarding;
2013 2017
5.2% 3.1%
2.5% 0.5%
7.2%
5.2% Asia Pacific Asia Pacific
7.6%
Europe Europe
35.9% Nort America Nort America
45.6%
23.5%
Soulth America Soulth America
Middle East
36.0% Middle East
27.6% Africa Africa
Intelligence), looking generally to the global freight forwarding sector declined by 3.3%
year-on-year in 2013 but the viewpoint through to 2017 is slightly bright. More
increase from 27.6% to 31.0% in Europe (case study related with the Europe). This
Thereupon, this research also will be focusing on a case study as its one of objectives
which based on transporting hazelnuts from Turkey to England as a formal reel sector
required information which will obtain through interviewing with predetermined expert
persons who work at the logistics sector. These data will be used mostly qualitative
The primary aim of this dissertation is to identify the how the fundamental roles of
freight forwarder can be integrated, and its impact on the manufacturer in the
fundamental roles of freight forwarder, and create a case study to implement all
fundamental roles while transporting hazelnuts as a best practice for the fulfilment
manufacturer companies are hiring freight forwarder service. Qualitative research will
be used more than quantitative approach in order to have a tangible result, and in
manufacturer companies.
Authors need to make a clear focus on the limitation in order to scope of the study and
the research of the topic, through keeping the study in the field of specific research
through examining to the subject detailed and deeply (Taylor et al., 2006). From this
definition, transporting processed hazelnuts will be the best practise of integrating the
industry, and this transport process is demonstrated as a real example of the planning,
organization, control and execution of freight transport at the right place and time. In
order to introduce, the hazelnuts manufacturing firm established in 1996 in Turkey,
and its seminal turning point was in 2010 because the manufacturer firm established
the sixth factories and employed approximately 850 people to fulfil customers`
demands in Turkey. Before this time, the manufacturing factory was working
domestically which means factory was purchasing unprocessed hazelnuts from the
farmers in order to process and sell at their market places. Over this period, the global
structure of manufacturer firm has been changed increasingly, and the firm start taking
order on their processed hazelnuts products, internationally. This situation affects firm
manufacturer firm start improve the volume of production capacity which was the
chocolate manufacturer firm in the world. In addition, company started to take orders
from another countries which were directly affected company production strategies
and decisions. These developments and the increasing demand on the volume of
international trade of the company also brought a growth at the flow of liquidity so firm
started to be supplier of the processed hazelnuts to the Italy, England and Dubai, these
deliveries had to be arrived their final destination timely and under convention
circumstances.
Briefly, according to the interview A, the numerical values have been taken from the
hazelnuts producer firm`s distribution manager, this is clearly shown that how the
biggest company is and the increase of the hazelnuts transport from 2010 to 2015;
209,000
205,000
200,000
155,000
152,500
150,000
141,000
117,000
70,000
55,000
53,000
45,000
35,000
34,000
33,000
25,000
19,000
18,500
16,000
13,000
12,000
7,500
5,000
2,500
In this graph above, the numerical values are shown of the hazelnuts exports based
approximately %70 of these amounts by the road and/or maritime transport for the
Italy, %22 of the processed products were transported to the England through the road
transport and %8 of the annual production delivered to the Dubai via air transport.
However, growth in demands and new agreement with the biggest chocolate
From this perspective, these challenges are caused to the hazelnut manufacturer firm
to be faced that the processed hazelnuts were not arrived to the chocolate production
point at predetermined times and caused to stop or slow down to another production
staffs have been the reason of suffering from stuck of the goods at custom clearance,
security, and delay of delivery times caused to the payment of the huge amount of
Therefore, hazelnut manufacturer firm decided to contract with a global logistics firm
which provides customized and expert freight forwarding service in order to eliminate
The structure of the dissertation consists of five chapters and will be regulated as
follows:
In chapter one, which is the introduction chapter of this research and will be focused
approach.
In chapter two, this part of research will be consists of gathering data in order to
analysis critically with the related literature reviews and taking the advantage of real
will be evaluating and supporting with the interviews which will be done with the
In chapter three, the approaches of collecting data will be identified and appropriate
research method will be applied in order to accomplish and complete to the entire
dissertation. Moreover, the effective research plan will be developed which based on
the research of the data source, rationale and technique within the collaboration of
In chapter four, this chapter of dissertation will consists of case study analysis, main
Result of created transport models will be evaluated that based on cost, time
and security
In chapter five, the comparison of the result of integrated fundamental roles of freight
forwarder with the centralized transport service, and its impact on the hazelnuts