Managing Export Logistics: Tips for Success
Export logistics is an integral part of global trade, but it does not follow the usual pattern of conventional logistics. Thus, any company that enters this market should be aware of the peculiarities of export logistics, to avoid possible pitfalls.
Export logistics refers to all the tasks involved in moving goods from a buyer to a seller at an agreed price. These tasks include arranging the paperwork, ensuring the goods are picked up, clearing them through customs, arranging onward transportation to their destination, packing them with other goods for shipment, providing insurance coverage, and paying duties and taxes on them if they are subject to these when they arrive.
Today, the export/ import market has really seen amazing growth. If you are also one of those companies who are part of this competition, you must be aware of the fact that managing an export logistics business is not an easy task. There are several international trade laws to follow. Sometimes, it is even hard to know the right steps for moving your goods from one place to another. Here are some tips to help you effectively manage export logistics:
i. Risk assessment
Every transaction must be assessed for its risks. This is one of the most important steps in reducing costs. It could include your logistics agent, a local transportation agent who might delay your shipment vs. the way the shipment is handled; foreign exchange rates at the time of export vs. the original estimated transaction costs; and the potential to incur hidden or unanticipated costs during this phase.
Time-saving gestures such as accurate documentation, cargo descriptions, and classifications come at little or no extra cost. An accurate valuation of your export cargo relies
on an accurate description and classification. A shipment that is accurately classified based on the Harmonized System (HS) code allows Customs agents to determine which tariff rates to apply. A violation of these requirements will result in expensive sanctions, cargo confiscation, and other punitive actions determined by the Customs agency.
iii. Choose the Right Agent
A professional forwarder, who has practical knowledge of the technicalities involved in export logistics processes, including regulatory requirements, is what you need. The first and
most critical success factor in the entire export logistics chain is to hire a competent forwarding agent who maintains open and transparent communication on
all transaction details. Getting this right will increase your chances of success in all other steps of the process.
iv. Organize your documents by developing templates and centralizing them
In logistics management of an international order, there are many different documents; depending on the formalities related to the nature of the goods and the customs regulations
specific to each country or region.
Knowing them and storing them for each case is crucial. Your logistics team will save time and avoid mistakes by using this information in their logistical documents. Having well-organized and synchronized documents will also improve the image of your company.
v. Choose the right tools
Today, there are many tools available to assist in structuring your business, securing your data, and maximizing the efficiency of day-to-day tasks. There are a variety of management software on the market that will address a variety of business problems (depending on your industry).
At TGL, we understand how significant the export process is and so we ensure your goods are properly marked, labeled, packaged, and documented in a way that suits all the requirements to reach the destination of the goods. We ensure that your goods are in proper shape during the time of transportation by making use of all the necessary preservation and storage method which suits the kind of goods you are exporting. We offer a wide scope of container desiccants that meets the necessities of clients.
Also, there are some certificates like Phyto Sanitary Certificates, Fumigation, Certificate of Origin, etc., that are needed when agricultural products are to be exported, all of which TGL will help you with.
With a team of over 50 years combined experience in freight forwarding, inbound and outbound logistics, compliance/documentation, and core technology services and we are more than able to ensure that the logistics process(es) of your business stays afloat. We also provide haulage services from the pickup point to the port.
Get in touch with our Experts to discuss your Logistics requirements.
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