Headland Freight Services Ltd (HFS) takes the headache out of importing for SMEs and first time importers. By simplifying the process, HFS allows businesses with small volumes who would have previously been dissuaded by cost, paperwork and risk, to import product from overseas whilst helping freight forwarders fill their containers

Headland Freight Services Ltd (HFS) takes the headache out of importing for SMEs and first time importers. By simplifying the process, HFS allows businesses with small volumes who would have previously been dissuaded by cost, paperwork and risk, to import product from overseas whilst helping freight forwarders fill their containers.

Background

Headland Freight Services Ltd (HFS) makes importing simple by managing customers’ shipments from start to finish in a way that’s not been attempted before. HFS works closely with a number of freight forwarders to help them fill their containers by bringing volume to the industry that would otherwise be very hard to secure. This unique and innovative service makes importing goods easier and more accessible for SMEs and first time importers. It’s the first time in the industry that a business has been truly focused on ensuring that importing is a viable option for smaller enterprises by adding huge value to the usability of existing services.

At the end of 2008, the Directors of Headland Freight Services set out to develop a business that could to change the way that SMEs looked at importing goods from overseas. The idea was to approach sea freight from a different angle thus facilitating a service that did not only offer competitive rates to customers but also provided, what they can say with great confidence, is the most user friendly offering in the market.

With little experience in the freight industry, the founders looked at the industry from the outside and experienced the smoke and mirrors effect that a first time importer may face.

The Issue

For SMEs and most certainly for first time importers, the process of importing goods from outside the UK is a daunting experience. A minefield of risk, hidden charges, surcharges, not to mention Economic Operator Registration and Identification (EORI) applications, tariff codes, Bills of Lading and the like, await potential importers. This can be, and is, often enough to put off prospective importers from sourcing product overseas despite the possible cost savings.

Research had also found that freight forwarders with their own regular containers from China were often running them half full as a result of weight restrictions placed on containers. These companies required lightweight, bulky freight but didn’t know how to find it.

China was identified as a key market due to the variety of goods being manufactured. Businesses in the electronics sector that had small, expensive products to sell in the UK could easily use courier services to import their goods from China as the shipping costs would be a small percentage of the final retail price. However, China is a major manufacturer of low cost bulky items such as textiles, children’s toys and bikes. Importing these by air or courier is not financially viable as the cost of the transport is often more than the cost of the goods themselves. This left small businesses in the UK the expensive option of buying domestically from suppliers who have other costs to pass on. A simple, cost effective solution to importing goods was required for small businesses.

The Solution

Having analysed the market and deciding that setting up as a Freight Forwarder would not rectify the issues faced by potential customers or solve the issues of unused volume, the business invented a new sector in the market. The business bridges the gap between the freight forwarding world and UK businesses who were trying to cut costs in the face of global recession.

Specialising in LCL (less than container load) sea freight shipments, HFS works closely with a number of Freight Forwarders who provide the transport side of the service. With no intention of becoming a freight forwarder, the relationships work symbiotically as customers who would individually be of little or no interest to a large forwarder can be managed by HFS. This allows the forwarders to deal purely with HFS and gain hundreds of extra LCL jobs per year in return for highly competitive rates that SMEs would never achieve independently.

The most important focus in the business model is customer service and ease of use. This has been achieved by removing the need to manage overseas agents, deal with customs or organise hauliers. This allows HFS to able to field routine questions that a first time importer may struggle with, proactively collect all the information required for UK customs, keep customers fully up-to-date with progress, manage the forwarder and oversee the process. This now gives the small businesses that may be deterred by the aforementioned difficulties, a service that is hassle free.

The route to market is the key to finding the type of customers that would be interested in the service. Freight forwarders have little to no resources dedicated to identifying small businesses that required help importing purely on an LCL basis. A close affiliation with award winning logistics company Parcel2Go.com has given HFS a link to SMEs who distribute small to medium amounts of parcels throughout the UK and therefore must be sourcing a product to distribute. Parcel2Go have successfully created an online business that is easily accessible to their customers via internet based search engines such as Google. By offering the service on the Parcel2Go website in addition to shipHFS.co.uk SMEs and first time importers can find it easily on the internet and get instant free advice like never before.

The customer focused approach to a market that is often set in its ways, is facilitated by the innovative nature of the business model. A recent example saw HFS import 10 cubic metres in volume of remote controlled helicopters that Graham, a first time importer, was planning to sell on ebay. Without HFS, Graham would have been faced by technical terms he didn’t understand and complicated quotes. If he chose to proceed, hidden costs and a mad panic would await at UK customs clearance when he discovered that he needed to apply to HMRC for paperwork which could lead to yet more costs. With HFS, as the shipment weighed just 750kg it was ideal to fill the forwarder’s unused container space and Graham received a hassle free import, and with the headache removed, he had more time on his hands to start the new business.