How can new manufacturing industries benefit by integrated C&F facilities.

In this complex day-to-day operation of an industrial or manufacturing plant, managers always try to look out for the best ways to cut costs in the key areas. It includes infrastructure improvement, plant downtime, keeping track of various isolated areas of production, etc. With so much to manage yet potentially reduce costs effectively, plants can benefit from the services of an integrated facilities management partner. Let us understand the benefits of integrating C&F facilities into the new manufacturing industries.

Definition of C&F:

In India, C&F means a Clearing and Forwarding agent. ‘Clearing and Forwarding Agent’ means any person who is engaged in providing any service, either directly or indirectly, connected with the clearing and forwarding operations in any manner to any other person and includes a consignment agent.’ These agencies grew out of the need to provide tailored shipping needs particularly suited for the business, according to the goods to be shipped and where they are sourced. Their primary functions include keeping the shipping costs low, by providing a range of transportation facilities, and services like packaging, related to shipping, and providing experts in clearing customs.

What are the responsibilities of C&F Agents?

A C&F agent has the following responsibilities:

  1. Receive goods from the factories or premises of the principal or his agents;
  2. Warehousing these goods;
  3. Receive dispatch orders from the principal;
  4. Arrange dispatch of goods as per the directions of the principal by engaging transport on his own or through the authorized transporters of the principal;
  5. Maintain records of the receipt and dispatch of goods and the stock available at the warehouse; Service Tax is payable on the above services.

 In order to become C&F agents in India, one must qualify the desired criteria:

  1.  You must maintain an adequate storage Godown facility measuring a minimum of 1500 sq. Ft., (5000 sq. Ft. shall be ideal). It should have all the required facilities, to satisfy the norms of Administration and specifications of Municipal Corporation/Gram Panchayat.
  2. You should have exposure to the operation of C&F Agency, preferably with Multinationals or leading Indian Companies, marketing a wide range of products.
  3.  It is a prerequisite to ensure that you have a large retail network in the territory you propose to cater to.
  4.  You should enjoy a reputation in terms of service management.
  5.  You must have adequate Delivery arrangements preferably your own Delivery Vans.
  6.  You must be capable of extending credit facility to Retailers according to the prevailing practices and norms in the markets.
  7.  A C&F Agent must maintain proper sales records.
  8.  As a C&F Agent, you shall assist the Company in expanding its retail network in its territory. You shall also provide requisite feedback to facilitate the growth of sales in the assigned territory.

Advantages of integrated C&F agencies to the manufacturing industries:    

  1. Previously the companies focused on saving taxes by having C&F agents in every state rather than geographic models for optimizing distribution. But with GST, this would be taken care of and now there will be a demand for large godowns and warehouse spaces. Real estate players are large offering state-of-the-art facilities, which can be taken up by the leading C&F players in the industry. These can be set up as one-stop hubs for all kinds of C&F distribution, with their own logistics network as well.
  1. By engaging C&F agents, new manufacturing industries can now concentrate only on production. They need not worry about storage, handling, distribution of finished goods, etc. This indeed helps them in saving on the capital investment in real estate space and managing logistics.
  1. Integrating C&F agents into the manufacturing industry also helps in handling the imports of raw materials, machinery, etc, and export of finished goods from your doorstep to the destination customs office. They take care of your customs clearance by collecting all the required documents from you and get the goods cleared through customs. They are abreast with updated regulations even if you have to ship your goods internationally. A C&F agent can be an integral part of your manufacturing cycle from start to end.

To know more about these advantages, get in touch with experts at Solution Buggy. Find solutions to any problems related to manufacturing industries from experts and be the best in your industry.

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