The challenges of logistics management
Globalization, e-commerce, and digital marketing have significantly raised the expectations for international brands aiming to distribute their products across an increasing number of countries. International logistics encompass the intricate processes of importing and exporting goods via ocean, air, or road. Each day, sales are becoming more globally integrated.
Navigating the import and export of goods entails managing a complex landscape of regulations, compliance requirements, and laws. Despite the apparent challenges — which can be daunting — expanding your customer base is imperative for business growth, and international shipping provides access to a vast global audience. This underscores the future trajectory of e-commerce.
Key elements of e-commerce fulfillment
Costs of global delivery
In this section, it's essential to grasp International Commercial Terms, commonly known as Incoterms. Developed by the International Chamber of Commerce, these terms standardize responsibilities between buyers and sellers in global import and export trades. They aim to clarify the transfer of risks during logistics activities and establish a universally recognized framework of rules worldwide.
In e-commerce sales, understanding different Incoterms is essential for negotiating product transport, whether for imports or exports, and making it accessible for all customers. Here are some of the key Incoterms to grasp:
- EXW (Ex Works): The seller's obligation is to make the goods available at their premises, then the buyer bears all responsibility for costs and risks from that point forward.
- FCA (Free Carrier): The seller is responsible for every part of the logistic movement, until the goods reach the destined port.
- FOB (Freight on board): The seller has the responsibility until the goods are loaded onto the previously stated vessel, once this happens the buyer assumes responsibility and makes the customs clearance process.
- CIF (Cost, Insurance and Freight): The seller assumes all obligations from when the ship leaves until it arrives into the port, seller is also responsible for paying the insurance to protect the goods. The buyer's responsibility starts when the goods are removed from the ship
- CPT (Carriage Paid to ):For this one, the seller is going to take every cost, risk and possible losses until the goods are in their consumers hands.
- CIP (Carriage Insurance Paid To):The seller's responsibility starts when he pays freight charges and insurance, ensures the arrival of the vessel at the set location, his responsibility ends when the goods are delivered to the buyer or 3PL.
- DDP (Delivered Duty Paid): This Incoterm states that the seller is responsible for covering all risks and costs from the point of origin (that includes, export and import duties, insurance, etc) up until it arrives at its destination.
Navigation and Transportation for international ecommerce
The right transportation for your product
When transporting goods from one location to another, selecting the appropriate mode of transportation is crucial for efficient logistics management.. Whether shipping by air, water, or ground, several factors influence this decision.
While cost-effectiveness is significant, it should not be the sole determining factor. Considerations such as the nature of the goods being transported, transit time requirements, integrated logistics capabilities, risk factors, and legal compliance are equally important.
Choosing the right transport mode involves balancing these factors to ensure timely delivery, minimize risks, comply with regulations, and optimize overall logistics efficiency. This holistic approach enhances operational effectiveness and customer satisfaction in the supply chain process.
Customs clearance, compliance and regulations
The customs clearance process is pivotal in international shipping. It involves the gathering and submission of necessary paperwork by a customs broker to facilitate smooth clearance of goods through customs checkpoints. Businesses must adhere to distinct international shipping policies, as each country maintains specific regulations and laws.
Navigating international shipping is more complex than domestic logistics due to these varying regulations. Compliance with customs regulations is paramount to prevent delays and expedite market entry. By ensuring adherence to these requirements, businesses can effectively streamline their shipping processes and enhance operational efficiency in global markets.
Warehousing location
Warehouses play a crucial role in shaping the customer shopping experience. Their strategic location and efficient management directly influence how quickly and reliably customers receive their products.
The proximity of distribution centers is increasingly becoming a pivotal factor in determining future expansion goals. By strategically locating warehouses closer to customers, businesses can optimize delivery times, reduce shipping costs, and enhance overall customer satisfaction. This strategic approach not only improves operational efficiency but also strengthens competitiveness in the marketplace. Therefore, careful consideration of warehouse locations and effective management are essential for meeting customer expectations and achieving business growth objectives.
Distribution and tracking of your product
Speed wins
The location of warehouses is critical for initiating efficient distribution processes, as delivery times directly impact customer satisfaction. Swift deliveries are pivotal in maintaining a competitive edge, particularly for brands expanding into new global markets.
Fast delivery not only enhances customer satisfaction but also strengthens brand reputation and customer loyalty. By strategically locating warehouses closer to target markets, businesses can minimize delivery times, reduce shipping costs, and meet customer expectations more effectively. This proactive approach not only improves operational efficiency but also positions the brand favorably amidst competitors in the global marketplace. Therefore, prioritizing fast and reliable deliveries is essential for success in international expansion efforts.
Tracking of orders
Tracking shipments is crucial in international logistics. Providing customers with the ability to monitor their packages instills confidence that their products are on their way and in safe hands, headed towards their doorstep. According to Dispatch Track, more than 90% of consumers want real-time tracking of their products, and 60% would reconsider buying from a brand if this doesn´t offer them this option. Transparent and real-time tracking is indispensable for monitoring freight movement, a service we prioritize for all our customers at Cubbo.
Ensure peace of mind by using a tracking number to monitor your package throughout its journey.
Risk management
In international logistics, various risks can emerge across multiple stages, spanning legal and political considerations, infrastructure challenges, customs procedures, operational hurdles, and technological complexities.
Navigating these complexities with guidance from experts, such as those at Cubbo, ensures a safer operational environment. Their expertise equips businesses with the foresight to anticipate risks and proactively mitigate them.
Engaging a Third-Party Logistics company (3PL), which manages all logistical needs, offers significant benefits. It not only saves time and reduces costs but also minimizes potential risks throughout the supply chain process. This approach enhances the security and punctuality of product deliveries, reinforcing overall operational efficiency and customer satisfaction.
Conclusion
Even though international logistics management can represent a big operative challenge, there are several actions you could take to ensure operations work as smoothly as possible. This guide teaches you the boxes to check in managing your e-commerce global shippings.
Start by understanding the different costs that you could have and they represent: like EXW, FOB, CIF, and DPP. Then consult and choose a transportation method for your product; look for the right customs broker for clearing customs; pinpoint the perfect location for efficient deliveries; track products and strategize to be able to manage risks that might arise from these operations.
Partnering up with experts in logistics can always help you check these boxes better and faster.
A footnote from Cubbo
Cubbo is an e-commerce fulfillment company that helps you get rid of all the logistics management headaches that rise when entering a new country. Our Importer of Record and Merchant of Record services allow you to import into Mexico and/or Brazil faster and smoother.
We have expertise managing the different challenges that international shipping has including customs clearance, pick and pack, distribution, tracking and delivery of your products.
Some of our most known customers like Dossier, Levis and Hawkers endorse our capability to increase their sales and decrease their shipping time. Ultimately, offering their end customers a better shopping experience.
Want to contact us? Click here.
