Redispatch: A Guide to Optimizing Cargo Distribution

The route taken by certain cargoes can be quite complex. Some locations are hard to access or exceed the capacity for certain businesses. In this context, it’s important to seek alternative solutions to meet your audience’s demands. A good example of this is the redispatch of goods.

This method can significantly aid in achieving deliveries while optimizing the entire distribution process. If you’re looking for these and other advantages, read on to better understand what redispatch is, how it works, and the essential steps to apply it efficiently in your logistics.

What is Redispatch of Goods?

Redispatch is a distribution method that involves transferring cargo between two transport companies, between its point of origin and destination. This means that during part of the journey, the goods are transported by a different company than the one that originally received the cargo.

For example, a transportation company receives the goods at their point of origin, with the destination being a satellite city in the interior. The first carrier, called the redispatcher, takes the product to a larger nearby city. There, the goods are transferred to a second carrier, known as the redispatched, which delivers the product to its destination.

What are the Types of Redispatch?

The redispatch process is divided into three categories, based on how it is conducted. Below are the main characteristics of each.

1. Basic Redispatch
   This is the simplest method, where the main carrier hires a secondary carrier to transport the goods for part of the journey. In this context, the redispatcher is primarily responsible for delivering the product, while the redispatched has a legal connection only with the company that hired it.
2. Intermediate Redispatch
   In this method, two transport companies are contracted to assist in delivering the goods. This means there is an initial redispatcher that receives the product at its point of origin, an intermediate redispatched that takes the product at a midpoint, and a second redispatched that transports the product from a nearby point to its destination.
3. Subcontracting
   Here, the original company hires a second carrier to handle the entire journey from start to finish. This practice is more common when demand exceeds the current capacity of the redispatching company.

In What Contexts is Redispatch Recommended?

The redispatch process has key advantages for transporting goods on a large scale. Here are some examples:

• Expanding Your Network
  Some companies may find it challenging to keep up with rapid growth in their transportation demands. In these cases, hiring redispatchers is a way to increase your capacity to meet the audience’s needs, even with limited time.
• Integration of Transport Modes
  Another purpose of this method is to facilitate the use of various modes of transport. This way, you can plan routes involving maritime, air, rail, or road transport, taking advantage of each mode’s strengths.
• Urgent Deliveries
  Certain goods need to reach their destination as quickly as possible. With redispatch, it’s possible to meet these deliveries in less time, regardless of external limitations.
• Hard-to-Reach Locations
  One of the most common goals of redispatch is to enable the delivery of certain goods to remote locations or areas with limited transport infrastructure—such as isolated towns where large vehicles cannot access. Instead, a carrier using smaller vehicles is hired.

What is the Step-by-Step Process of Redispatch?

If you want to use this method as part of your transport logistics, it’s essential to understand how it is conducted. Here’s the step-by-step process:

1. Request for Redispatch
   The entire process begins with hiring the company that will be the redispatched. For this, the original carrier must issue documentation, including the Transport Invoice, Electronic Transport Knowledge (CTe), and the Electronic Manifest of Fiscal Documents. Throughout the journey, the CTe of Redispatch must also be provided, issued by the redispatched. If there’s more than one transfer, the third involved company must issue the Intermediate Redispatch CTe.
2. Collection of Products
   Once the itinerary and transfer points are defined, the redispatching company collects the product at its point of origin. If the company has subcontracted another carrier, the redispatched will pick up the product and transport it to its destination.
3. Transfer of Redispatched Cargo
   The goods arrive at the established transfer point and are transferred between the redispatcher and the redispatched. They may use different types of ships and transport methods along the way, which may require additional transfers.
4. Delivery to the Final Customer
   Once the last company in the transport chain receives the goods, it only remains to deliver them to the final customer. In some cases, this carrier follows last-mile logistics, delivering the cargo only in the final stage.

How to Implement Redispatch in Your Logistics?

It’s true that redispatch is a highly effective method for expanding your business potential. However, to achieve the desired results, you need to plan accordingly. Here are some key points to consider before you start:

• Evaluate Demands
  First, conduct market research to determine your audience’s demands. This includes both the volume of goods in circulation and deliveries in certain locations. This way, you’ll know if there are growth opportunities that can be better leveraged through cargo redispatch.
• Form Strategic Partnerships
  The carriers hired as redispatchers should be reliable and well-qualified. After all, your company is primarily responsible for the customer’s goods. If necessary, conduct tests using smaller deliveries before committing.

Redispatch is a good option for optimizing the transport of goods. Understanding how it works, its structure, and its potential challenges will also make a significant difference when adopting this method in your logistics.

Want more information to improve your company’s services? Then check out our article on Brazilian port logistics, its challenges, and how it impacts the economy.