In this complex day-to-day operation of an industrial or manufacturing plant, managers always try to look out for best ways to cut cost 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 to the new manufacturing industries.
Definition of C&F:
In India,
C&F means 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 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 minimum 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 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.
4.
You should
enjoy reputation in terms of service management.
5.
You must
have adequate Delivery arrangements preferably 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 retail network in its
territory. You shall also provide requisite feedback to facilitate 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.
2.
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 on real estate space and managing logistics.
3.
Integrating C&F agents to the manufacturing industry also helps in
handling the imports od 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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