5 reasons why using a FAIM certified mover can save you money
We all love a bargain. But if you’re in the purchasing department of global mobility, the temptation to chase the lowest cost when selecting a relocation company can be a false economy. Here are 5 reasons why using a FAIM-certified, reputable moving partner can pay dividends:
1. Reduced cost of risk
The main reason is that there is a cost attached to risk. International moves are complex, involving multiple logistical steps and a host of 3rd party providers. Under these circumstances, things may sometimes go wrong. However, by using experienced partners and applying proper processes you can minimize the chances of expensive mistakes.
A simple example might involve the cost of unexpected, additional storage at the port of arrival if something goes wrong with the timings of a relocation. It doesn’t happen very often, but there is a measurable probability and that needs to be multiplied by the cost to provide an average – or the cost of risk that should be factored into every budget.
We can calculate this cost of risk quite precisely. Consider two examples, where we compare a reputable partner with one that follows less rigorous processes, and therefore has a greater risk of incurring extra costs:
EXAMPLE IS MEANT FOR ILLUSTRATIVE PURPOSES AND DOES NOT REFLECT ACTUAL COST
FAIM processes strictly observed.
Probability of delay: approx 5%.
Typical cost of delay in additional storage costs: 5 days @$100/day
The average cost of risk = $500 x 0.05 = $25
Less rigorous processes followed
Probability of delay: approx 20%
Typical cost of delay in additional storage: 10 days @$100/day
The average cost of risk = £1,000 x 0.2 = $200
Mobility professionals oversee a large number of relocations, and need to deal in averages. The example above indicates that FAIM processes save an average of $175 – on the issue of additional storage alone. The figures are purely illustrative, but given the multiple areas where errors may occur, the total cost of risk quickly mounts up.
Beyond the principle of the cost of risk, there are 4 other specific ways in which using a FAIM-certified, reputable moving partner can pay dividends.
2. Accurate assessment of cargo
Container space is one of the key drivers of cost, so making an accurate assessment of what needs to be shipped is essential. Under-estimating means some items will not be shipped – so an inexpert mover will be tempted to over-estimate in order to make sure, which means you often pay for extra, unused container space. The experience of FAIM-certified movers means they will be more accurate than most, and therefore keep your costs to a necessary minimum.
3. Knowing what to ship, and what to leave behind
Making the right decision on exactly what you need to ship will also have a significant effect on the total cost. For example, it may be more cost-effective to store some items locally, and either rent or buy new in the host country. A FAIM-certified mover will have the knowledge to advise you, thus identifying a number of opportunities to save on shipping costs. Their knowledge will also help you avoid problems with customs clearance in your host country, which can result in either fines or more storage costs, not to mention the sheer inconvenience.
4. Thorough pricing structure negotiation
The way in which shipping charges are priced is also key, but it is a complex job to accurately assess which volume or weight bands you should choose. A FAIM-certified mover is able to help you find the option that suits you and makes best use of your budget.
5. Helping you make a better choice, fast
Global mobility departments will also be aware of the time (and therefore expense) of choosing a moving partner. The FAIM framework suggests key performance indicators, helping corporate buyers and global mobility professionals to make a fast and meaningful comparison between prospective suppliers. Whether or not you ultimately choose to work with a FAIM-certified relocation company, the efforts of FIDI to standardize and formalise the relocation process saves you time and money – whilst also ensuring you end up with a supplier that suits your budget.
FAIM partners allow you to win twice
A FAIM certified partner will never be the cheapest option on the market, nor should it be. By choosing for a high quality partner, you warrant yourself both a high value service and tangible financial benefits in the long run. In the words of Alan Bryce, President of Passages Relocation of Canada, and a long-time user of FIDI-affiliated partners: “We cannot afford a failure of service”.