Andy Martin - YRC Logistics EU

I attended a prospect appointment with one of our Global Development Managers and during the call it became apparent that the prospect did not have a deferment account, but used their current freight forwarders instead. All through the call the prospect kept informing us that due to the current economy they needed to reduce their expenditure on freight by at least 10% and could not waste money by needlessly using airfreight.

When we asked the prospect how much Duty and VAT they put through the Deferment account and we were surprised to hear it was approximately £500,000 per month, their current forwarder charges 4% so this was costing him £20K per month.

We explained to the client that our International Trade Department could help them set up a deferment account and authorise them for SIVA which will also remove the need to guarantee the account for the VAT element reducing their costs even further.

It is interesting that this prospect was focusing so hard on the freight rate, but was leaving £240,000 on the table. It just goes to show that there are many areas in the supply chain that can add extra profit and quite a few of them get missed!

Labels: Deferment Account, Duty, VAT