International logistics and export This project has been funded with support from the European Commission. The author is solely responsible for this publication (communication) and the Commission accepts no responsibility for any use that may be made of the information contained therein. Project number 2016-1-LT01-KA202-023149

International Logistics and Exports In this module: Logistics 101 Challenges to Master for International Shipping Concrete tips to help your business succeed at selling and shipping around the world Case study – Logistics Outsourcing Activity – Shipping internationally

Logistics 101 What is logistics? Logistics is the organisation and implementation of a complex operation that incorporates management of flow of things between the points of origin and consumption to meet the requirements of the customers. It’s about a planned process that involves: Integration of information flow Material handling Packaging Inventory Warehousing Transportation

Logistics 101 How is international logistics different? International logistics is the distribution of goods beyond the country boundaries. Managing logistics domestically is very different from managing logistics internationally because of the much narrower geographic scope in a domestic operation.

Logistics 101 Domestic logistics compared to international logistics Management Domestic logistics management is relatively easy to oversee. In contrast, international logistics means you will have to deal with language, customs, tax issues, etc. Transportation Domestic logistics: road transport is the most common preference. International logistics: limited transportation options, in some cases also multiple transportation alternatives for a single transaction.

Logistics 101 Costs involved Supply chain relationships Both domestic and international logistics: costs involved with, for example, transportation. However, in international logistics, there are some additional costs to be considered too which may include tariffs, government taxes and other factors. Supply chain relationships It gets easier to build trustworthy relationships domestically but, in international cases, different country regulations, geography and economic roadblocks present more challenges in building reliable relationships.

Challenges to Master for International Shipping How to battle international shipping challenges Do not rule out the importance of international rules and regulations To avoid significant delays or additional costs to your transportation spent, as a result of overlooked logistics, be sure to collaborate with customs at origin and destination to ensure all information is compliant with regulations and procedures. Get your priorities straight to determine which transportation mode is best Make sure you know your timeline, budget, and any regulations associated with the materials or goods you are shipping.

Why Internationalise? Recognize the importance of supply chain visibility Understanding where your cargo is at any given time gives you the ability to prepare for the next step. It also saves time and allows for quicker access and less chance for storage charges and delays. Know when to ask for help Third Party Logistics Providers (3PLs) act as an extension of your logistics services. To maintain control and visibility of your shipment the entire time, 3PL’s could for instance organize bookings with the carrier.

Concrete tips to help your business succeed at selling and shipping around the world How to successfully (start) selling and shipping around the world Localise the Experience For example your website should be localised so that it makes shopping simple for international shoppers. Do not show product prices in your own currency when the customer is primarily familiar with another currency. Start with One or Two Countries This way you can learn how the international logistics work. Then you can slowly expand your reach.

Concrete tips to help your business succeed at selling and shipping around the world Know What To Sell Globally International shipping could make thing costly. Start by selling the lightweight products to international customers. Small, lightweight items cost less to ship. They can often be packed in carrier’s free shipping supplies. Know What is Legal to Ship to other countries While internationally shipping you need to take country-specific shipping requirements into account. Some products are prohibited to ship to other countries or require specific documents. Third Party Logistics Providers (3PLs) can provide the overview of what can and can’t be shipped worldwide.

Concrete tips to help your business succeed at selling and shipping around the world Make Customs Forms Easy to Complete When you complete the Customs Forms, list the contents of your shipment completely. There is usually a limited amount of space, so be accurate, but do not be wordy. Address it Accurately Make sure you provide a complete sender and recipient addresses, including phone numbers and zip codes. The full country name should be listed on the last line of the address.

Concrete tips to help your business succeed at selling and shipping around the world Be Smart with Packaging Use new boxes or poly-mailers that are appropriate for what is being shipped. Make sure you leave plenty of room for cushioning. Do not skimp, cushioning is inexpensive insurance that will help ensure your product arrives safely. Weigh and Measure the Package Size and weight restrictions apply when sending items internationally. Those restrictions vary by country. You can contact your shipping carrier in advance so you know the restrictions for your destination or send your items in flat rate boxes that are available from some carriers.

Concrete tips to help your business succeed at selling and shipping around the world Know All of the Costs in Advance 3PLs can help you calculate the total cost (also referred to as the “landed cost”) before you ship so there are fewer surprises for you and your customers. Reduce Shipping Costs Experiment with pricing strategies like flat rate shipping or free shipping. You can also adjust the package’s delivery time. If the customers have no problems with waiting a few extra days to receive their items, they will notice a tremendous savings in shipping.