Commodity Handling Agents

Commodity Handling Agents or Carrying and Forwarding Agents (CFAs) act as the bridge between the company and customers. Companies need them because they cannot manage the logistics in all the markets. Handling agents need to have a good liaison with the local labour unions, transporters, godown owners and often with the wholesalers.

Responsibilities of Commodity Handling Agents

  1. The handling agents are responsible for receipt of material from the factories, upkeep of good stock in the godowns, data entry in ERP system etc.
  2. They are responsible for the timely dispatch of goods to customers & invoicing.
  3. If the material arrives by rail, handling agents also need to coordinate with local Railways Department officers for unloading of material from the wagons and transportation to the godown.
  4. In case of damages in material during transit to the godown, commodity handling agents are responsible for the salvage or disposal of damaged material.
  5. CFAs also have a role in controlling infiltration of material meant to be dispatched to one area but unloaded in other area, especially if CFA is also responsible for arranging the transport.

Commodity Handling Agents versus Distributors/ Wholesalers

A few large companies do not allow their CFAs to do wholesaling of their product or other brand in the same industry. This is done to avoid conflict of interest as the CFA might start using the godown premises or company’s transportation vehices to favour his own retailers over other those of other distributors serviced from the godown.

However, this has been implemented by a very few building materials companies as at the time of entering a new market, companies want to outsource the material handling work to someone who knows the product and industry well and an existing Distributor of the product in the area is well versed with the nature of the product. Also, it gives quick access to the retailers of that Distributor if he becomes his CFA also.

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