Tuesday, 31 May 2016

What are the export contract details in an efficient supply chain?

Export contracts include the following details, which aid transparency.

  1. The registered name and address of the exporter (seller)
  2. The registered name and address of the importer (buyer)
  3. Short titles of the exporter and importer
  4. The purpose of the contract – specifying the merchandise sold by the exporter to the importer
  5. The number and the quality of the goods – a complete and full description that will mention any batches and reconcile the goods description with the custom tariff description
  6. The price which needs to be convertible. The currency could be in either the exporters or the importers currency or, if acceptable, a third currency. If it’s the seller’s currency the risk of variation is transferred to the buyer and vice versa. When using a third currency the variation risk is shared between the buyer and the seller.
  7. The terms of delivery
  8. Terms of payment – perhaps cash with order, credit letter, against payment etc.
  9. Delivery date, shipment date – this item has a strong interface with international transport operation
  10. Method of shipment – air, multi-modal, container etc.
  11. Packing method – packing specification is agreed on by both the buyer and the seller. There are strict regulations applied to goods considered dangerous.
  12. Cargo insurance terms
  13. Import/export licence information or instructions – terms of payment, delivery date/shipment period has to be reconciled with the period of their validity. The logistics operator has to acknowledge zero tolerance.
  14. Shipping, freight and documentary requirements – Marking of cargo included and all logistics operators have to be familiar with.
  15. Contract conditions – Could include the sale, performance of goods, security etc. Local conditions vary depending on the destination.
  16. Signature – Both parties must sign the contract and all information needs to be recorded

Export sales contracts will vary depending on the circumstances of the sale and the contract terms are driven by the logistics strategy. There may be additional features such as agency involvement or after-sales activities. The terms may also embrace third country assembly, outsourcing components, inbound and outbound movement and so on.

Logistic operators have to reduce risks such as fluctuations in currency, unreliable transit schedules, political situations, protracted customs clearance, liquidation of the buyer and so on. The document is usually transmitted electronically.

Monday, 30 May 2016

What logistics strategic focus should companies consider during market entry?

Before entering a market, a company needs to have a logistic strategy focus in their decision-making process. Here are some of the considerations that are relevant to the logistics strategy:
  • They need to have a customer portfolio with an international base
  • They need to lower unit costs and allow for more competitive pricing by increasing production
  • The company profile needs to be raised in order to attract more capital so the funds can be put towards new technology
  • Realise a volume based productive utilisation of the infrastructure in the company and the supply chain
  • Increase their market share
  • Increase the competitiveness of the firm
  • Develop an international brand image
  • Ensuring the long-term future of the company
  • Development of a proactive company that is globally logistically and market research focused

Saturday, 28 May 2016

Chit Chat: Social Media and eCommerce - Part 1

Here are 6 social media marketing tactics that can be used to boost traffic to your website and grow your eCommerce business.
  1. Optimise each social media post by using your high conversion keywords. This will increase visibility in search and help you to find a larger audience. The keyword research needs to be used to find the terms used by your audience. Add visuals to your posts when possible too as this will grab the attention of your readers.
  2. Make sure you are sharing the right type of content and avoid strong sales pitches; they’re not welcomed in social media. Think about how you can provide information and come up with content that will give your customers a great experience. Inform, educate, entertain, and make sure the customer comes first.
  3. Make use of your reviews in your social media marketing.
  4. Add social sharing buttons to your product pages and other prominent areas of your website and don’t forget to add them into your email marketing too.
  5. Use visual content as it can optimise posts and make them more engaging for your audience. Product images should also be shareable for use on Instagram and Pinterest.
  6. Use social media to interact with your followers and anyone else who chooses to interact with you. Check frequently and reply to comments, thank people for sharing and join in with discussions that take place on your profile. You could also join groups to stay on top of trending topics, retweet, and share articles, videos, images and other forms of content that would be interesting to your customers. Work hard to build relationships with influencers and host live chats so your customers can have real time chats with your brand.

Friday, 27 May 2016

What points are relevant when conducting adequate research to supply chain business oversea?

Exporters need to sell their products at a profit and so it is necessary to conduct research into the new markets to ensure the company is compatible with the buyers and that there is a sufficient supply chain for both parties.

Here are the points that need to be taken into consideration:
  1. Knowing who the main players are in the market
  2. Any legal and/or political constraints and the market access
  3. The stability and infrastructure of the market
  4. Availability of the product and the stage of the development
  5. Are buyers flexible and adaptable and how computer and logistic literate is the market?
  6. Stability of the exchange rate and the importation costs
  7. Trading bloc membership
  8. The state of development of the market
  9. Opportunities for joint ventures, mergers, acquisitions, licensing, franchise and so on
  10. The benefits of the market such as the location, resources etc.

Thursday, 26 May 2016

What are the 9 points deployed in the lean supply workforce?

Workforces and management may feel reluctant to change to a lean supply chain. Here are some of the benefits that can be used to show the advantages of moving with the times and making the necessary changes.
  1. Evaluating the true costs of changes and calculating the ROI can be achieved using modelling and simulation tools
  2. Overstaffing, overtime and using temporary staff can all be eliminated when using proper workforce planning and scheduling
  3. Lean supply workforce strategies, develop an efficient, focused logistic culture that is cost conscious
  4. Work avoidance activities can be eliminated and productivity and morale can all be improved as all workers are evaluated fairly
  5. Productivity and throughput is improved, costs are reduced and services improved by eliminating waste
  6. Best practices ensure the most efficient, safe and error-free methodologies are used. As a result the training costs are reduced while customer services, improve along with quality
  7. Accountable and self-motivated workers with high morale, provide a better service to the customer and this improves customer loyalty and satisfaction
  8. Retention and morale in the workforce is increased with a collaborative partnership and this will have positive effects on the bottom line
  9. Activity based costing is achieved through the use of granular standards and measurement software allowing managers to have a clear understanding of the costs of serving each customer

Wednesday, 25 May 2016

What is lean supply workforce and what are the seven areas on which it focuses on?

Lean supply chain management requires a demand-driven workforce that incorporates a pull model. The lean supply workforce can be traced back to its conception by Toyota and their highly efficient manufacturing workflow process. 

The idea is to remove the waste from workflow processes. Now it is used in the global supply chain as it eliminates waste and adds value. The seven areas of focus below were developed by Toyota’s Product Engineer - Taiichi Ohno.
  1. Adopt the best price approach rather than using historical methods
  2. Set the standards, goals and adaptable precision. The best practice uses the most efficient methods. Each individual job can be examined closely to establish the right length of time for each of the tasks.
  3. Planning, scheduling and simulation are next. Based on best practice being in place technology is then used to translate order demand information along with special promotions and so on to decide how many people will be needed to complete the tasks within a set time frame in order to meet demand and to eliminate waste.
  4. An area where waste is found is unproductive and time spent between jobs, or indirect time, is embraced.
  5. Establishing best practice involves key factors such as safety and quality which is realised through training employees and removing any barriers that stop productivity.
  6. Educating the workforce in logistics skills so they can develop best practice includes training, refresher course and continuous training.
  7. Management requires plenty of regular data that can be used to measure the reliability and productivity of the workforce.

Tuesday, 24 May 2016

What are the six stages of lean tools in supply chain management?

It’s not easy to adapt to a lean supply chain. There’s usually the need to include strategic sourcing to manage supplier performance, strategic customer to get the points of view of the customer and sales operations planning in order to blend the suppliers and customer strategy with the day to day management of the supply chain. 

There needs to be the infrastructure in place to support the supply chain and there are six stages of lean tools to use:

Visualising the organisation of waste removal in distribution centres and offices can be achieved with the 5 S’s– Sort, straighten, sweep/shine, standardise and sustain/self-discipline.

Fast set-up – Adjust the layout of the warehouse to organise seasonal products, new products, and fast moving products.

Kanban – Viewing warehousing and inventory positioning in a new way, coordinating multistep processes for many different products. Mini warehouses are used so the inventory is located closer to the customers, reducing delivery times.

Workcell – Self-contained unit that can be used to combine multi operations into a central zone and where warehouses can perform activities such as assembly.

Standardise – Defining who, when, where, what and how the repeated work processes are performed to synchronise the time that is required for pulling and shipping orders. The standards are used to train employees.

Sigma – Sigma relates to quality and it’s an advanced tool that focuses on variations and controlling/preventing any errors.

Monday, 23 May 2016

What are the three areas of lean supply chain management and what areas need to be addressed?

The three key areas of lean supply chain management are expanding beyond the supply chain and manufacturing programme, changing the organisation so it is logistically literate and focused. It also embraces both the suppliers and the customers. Finally, it determines values from the customer view and not the company view.

The areas that need to be addressed include:
  • International sourcing – One of the obstacles to lean supply chain management is the procurement of finished goods or raw materials around the world, especially outside North America. Delivery times can be very long, inventory increases and inventory waste are a problem.
  • Accounting – Accounting doesn’t recognise waste in the same way that lean does. Accounting doesn’t recognise time and rework isn’t treated the same.
  • Organisation – Gaps can be found when implementing a process that travels horizontally in a vertical organisation. Gaps can result in waste and removal of the waste can prove difficult.
  • Number of firms – Many suppliers and logistics services don’t use a lean strategy and some aren’t as visible as others. Implementation of lean strategy to outside firms increased the complexities involved and takes time.

Saturday, 21 May 2016

Chit Chat: 2016 Healthcare Trends According to Industry Experts

Here are some of the healthcare industry trends expected to take off during 2016.
  • Increases in mergers and acquisitions. Consolidations result in larger health systems and insurers and branding becomes critical. Consumers don’t want to pay more for top-ranked hospitals but many will travel further to gain access to care from well-known healthcare systems.
  • Drugs prices on the rise. Prices have skyrocketed and there needs to be some kind of fair pricing formula created in the next year. Biosimilar drugs might be one of the ways the prices can decrease as near substitutes can be sold without the branding.
  • Cybersecurity worries. Hacked systems pose a problem as consumers are not going to feel confident if their data is stolen or considered at risk. Organisations need to prepare and prevent attacks.
  • Technology for consumers – Smartphone apps that are health related will continue to grow in popularity. People want care in the palm of their hands.
  • Behavioural healthcare – Mental health is important for the well-being of workers and consumers. There is a need to serve these patients and recognise that one out of five Americans experience mental illness each year.
  • Money manager consumers. Consumers need to pay closer attention to their health spending because of higher deductibles and co-insurance.  Payment plans and new tools and services will help consumers pay for the services.
  • High-tech databases and deep data analysis will provide insights that are required to improve consumer health.
  • Care costs. Looking at ways to improve efficiency so healthcare systems can provide value based care.

Friday, 20 May 2016

Asset Management in the Supply Chain

A key area in the global supply chain and warehouse management is asset management.  Asset management works is alignment with RFID and provides lots of benefits in manufacturing work in progress, loss prevention, security, asset utilisation and inventory control.

One of the problems with asset management is that it's a resource intensive process. Often incorrect or out of date data is used to make fiscal decisions and there aren’t many current methods for inventory counting or the tracking of asset movements. There’s no real time asset visibility.

Other challenges include asset monitoring to prevent losses or theft and lack of security. Losses or thefts result in additional costs to replace the asset and being able to spot potential risks such as these can work to save money.

The three main areas are real-time visibility, status or tamper detection, integration of high level solutions and movement. Addressing these problems requires RFID along with the Mobile Resource Management software.  The systems work on the basis of data capture ecosystems and allows for the best use of technology, having a single data collection exchange and reporting structure and data collection mechanisms.

Thursday, 19 May 2016

What are some factors influencing the development of global logistics? – Part 3

Today is our final look at some of the factors that influence global logistics.
  • Improvements are needed in the global infrastructure, including modernising ports, free trade zones and inland clearance depot developments.
  • Global logistics is computer driven, when it comes to the operations and so the need to rapidly expand on IT is a continuous development.
  • Global operators need to be responsive as this is what’s demanded by companies. This requires visibility, so delays or any challenges can be shared with the customer. Traders want a quick response and so mega-logistics carriers are perhaps the best response.
  • Most changes in suppliers are caused by poor services or a lack of customer driven attention rather than cheaper products.
  • Continued development of 3PL contractors.
  • Reducing production cycles for the producers/manufacturers who want to take advantage of the logistics system.
  • Improvements in supply chain software and integration of supply chain management. The development of software has been driven by rapid globalisation of distribution and manufacture.
  • Time-sharing developments with logistics contractors. Linking the contractor to the customers IT systems.
  • Trading and economic blocks found in EU, Far East and North America pushes for the continued development of adopting strategies as found with global logistics traders.

Wednesday, 18 May 2016

What are some factors influencing the development of global logistics? – Part 2

Today, we’re continuing our look at some of the factors influencing the development of global logistics.

  • Adding value through the global logistic network. Perhaps using more outsourcing at lower costs while improving quality or improving packaging systems, for example.
  • Focusing on launching products to global markets simultaneously to favour the logistics operations.
  • In order to remain competitive, traders now need to use a global logistic strategy.
  • Satellite production is computer driven and therefore, it demands a logistic network.
  • Reducing product life cycles, which has been driven by the international market demands that all favour efficient logistics.
  • Technological developments to increase shelf life for products, especially food products. These need a sourcing mechanism that is logistics based.
  • Allowing traders to concentrate their efforts on their core business by working with a global logistics operator.

Tomorrow we’ll conclude our look at the factors that influence global logistics.

Tuesday, 17 May 2016

What are some factors influencing the development of global logistics? – Part 1

Over the next three days, we’re going to take a brief look at some of the factor influences for the development of global logistics.

  • Information technology development. RFID allowed for communication and data transmission to be transformed. It has opened up markets in outsourcing manufacturing and assembly as well as refocusing the strategies.  RFID has no barriers such as time zones or language, so data can be transmitted continuously.
  • Markets continuing to go global and using the international trade environment to develop international confidence.
  • Development of global container networks has presented a new challenge for global traders, focusing on adding value to the distribution trend.  The challenge is to find ways to extend the multi modal container service to improve efficiency and benefit the shipper and improving transparency of the flow of goods through the supply chain. Developing improved coordination with the flow of funds and movement of goods will allow importers and exporters cheaper access to money sources.
  • Expanding the integrators DHL and TNT, opening new markets in the service and manufacturing industries.
  • Development of the hub and spoke container network and reducing the need for end to end/port to port liner conference systems.
  • Mega container carrier’s development of in-house global logistics operations resulting in the decline of freight forwarding.
  • Development of free trade zones, free ports and distriparks continue to present new opportunities for trade distribution.

Return tomorrow for more of the influential factors for the development of global logistics.

Monday, 16 May 2016

What is some Strategic Development for Excess Inventories in the Logistics Supply Chain Network?

The development of a strategic approach that focuses on processes at all management levels in the company is essential . Company’s commitment is required for the following areas:
  1. Inventory analysis – identifying daily measurement of movement in the inventory
  2. Lean inventory – developing lean inventory emphasises pull for product movement and can be used as a tool to identify unnecessary inventory and reducing it
  3. The entire supply chain distinguishes two major elements including the inbound and the outbound supply chain. Developing multiple transports and stocking programme.
  4. Using velocity and profitability to segment inventory
  5. Placing an emphasis on customers, sales and profits
  6. Formulating and implementing sales and operations planning that embraces the sourcing and customer strategies
  7. Working to compress the cycle time
  8. Having a focus on reliability to help benefit the image of the brand
  9. Being innovative and creative
  10. Distribution network needs to be updated to ensure it is making the best use of warehouse design, layout and transportation resources.
  11. Supplier performance and increasing supply chain transparency
  12. Global sourcing effects – knowing the impact of sourcing, addressing inventory and being competitive, especially when it comes to pricing
  13. Outsourcing. Using 3PL or 4PL as an ongoing approach to inbound or outbound supply chains.
  14. Ecommerce requires adequate software for the warehouse and using bar coding or radio frequency identification

Saturday, 14 May 2016

Chit Chat: 2016 Healthcare Predictions According to Industry Experts

Today we’re having a brief look at some of the top healthcare predictions for 2016.

  1. Major hospital mergers being blocked by the FTC – based on data that shows consolidations lead to price increases
  2. Wearables becoming “ther –ables” – Wearables are priced to be popular and a new category will enter the market to substitute expensive medical therapies
  3. Hospice use doubles and end of life care attracts attention in the media – Sharing decisions for end of life discussions
  4. Major hospital system divests from employing doctors
  5. Insurance craze of 2015 to become bust this year as start-ups and noted providers struggle to remain competitive
  6. Precision medicine cools off and greater return on investment is seen in prescribing generic statin, having compliant patients, hitting goals and having an evidence based guideline supported approach.
  7. In person on demand loses appeal and video telemedicine will be the best way to provide rapid care at less of a cost.
  8. Employers taking healthcare costs as seriously as their travel expenses and become active in imposing rules to manage their healthcare costs.

Friday, 13 May 2016

What is Inventory Management and what are the Causes of Excess Inventory?

Inventory management is a critical area in cycle time analysis. The management of inventory begins from when inventory is required, to when it is received, sold and the payment for the sale has been received. The longer cycle time the larger amount of inventory is carried to balance against uncertainties.

Inventory is an asset, it’s positive for businesses. It has a limited shelf life and there is a window of opportunity to sell the products when the window closes the sales value decreases and the inventory yield isn’t maximised. Inventory works against having a decent warehouse layout that is designed to reduce order picking and it adds to labour costs.
Time and effort can be wasted if the company decided to do too many cycle counts. Too much inventory will mean having a larger distribution centre than what is really needed in order to store the extra goods. As a result the costs are increased and the ability to respond quickly is hindered. 

Some of the causes of excess inventory include:
  • Loss of sales – Perhaps caused by overoptimistic sales forecasts or availability of new products, competition and so on
  • Price strategy – taking advantage of lower costs for increased volumes of goods
  • Obsolescence – writing off inventory that impacts profit and loss for the year
  • No inventory management measures – no aggressive measures to measure and manage the inventory management
  • Planning – Not basing inventory planning on demand management
  • Supplier performance and analysis – Not managing suppliers
  • A lack of processes that embraces buying and order transactions – no strategic processes for customers, tactical processes for sales and operations planning and sourcing
  • A one size fits all approach – Failing to segment the strategy in order to reflect the inventory differences

Thursday, 12 May 2016

What Customs Facilities are Available for Exporters?

The customs facilities available for exporters include:
  • Export –Any goods that leave the EU might be subject to licensing requirements, commercial policy measures and export duties
  • Outward processing relief gives relief from duty on the EU goods that have been repaired or processed abroad before being reimported
  • Community transit – EC customs procedure that control and facilitates movement of certain goods from one EC port to another, resulting in the delayed payments of duty and VAT
  • ATA carnet – can be used to simplify the customs clearance of temporarily exported goods
  • TIR carnet – there are conditions, but it allows goods to move over national frontiers with minimum of customs formalities, VAT and duty

Wednesday, 11 May 2016

What Customs Facilities are Available for the Buyer?

When crossing borders it’s necessary to take account of the customs requirements and the procedures. Any errors can lead to delays, increased inventory costs and loss in the responsiveness of the supply chain. The customs facilities that are available to the buyer include:
  • Import into free circulation – the duty and import VAT are paid, goods move from customs. Some goods may also be subject to import licences
  • Customs warehousing – Storing goods without paying import duty or VAT until the goods are moved from storage
  • Free zones – allows goods to be processed and stored without payment of import duty or VAT
  • Inward processing relief suspension and drawback – relief from duty on materials and components that are imported for use in the manufacture of products that will be exported
  • Processing under customs control – importing dutiable components and materials without payment of duty that will be processed into finished goods and released for free circulation at the duty rate of the finished goods, which may be a lower rate o f the materials and components
  • Temporary importation – Goods that are imported for a set period of time, no more than 24 hours and then exported in the same country are given relief from duty
  • Returned goods relief – reimported goods that were exported given relief from duty
  • End use – No duty or reduced duty for goods intended for a specified end use
  • Other – Goods are destroyed, disposed of or re-exported without paying duty

Tuesday, 10 May 2016

What’s the Significance of Customs Planning in Global Supply Chain Management and what are the Key Roles?

Customs planning in global supply chain management is essential. It is vital that the efforts of the procurement manufacture and marketing and distribution aligned with the supply chain management team are all efficient, coordinated, reviewed and audited. These elements can be in different countries and the borders may need to be crossed as the goods are shipped, therefore, they become subject to customs authorities control.

There are three key costs for business areas:
  1. Direct costs such as paying duties and import costs
  2. Costs for the business relating to the import restrictions, meeting the requirements of customs and the compulsory document requirements
  3. Opportunity costs and future liabilities as a result of errors
When goods move over borders the management of the custom function is a key factor to the success of the supply chain management.  The supply chain functions include procurement, manufacturing, marketing and distribution and customs considerations have an impact on all of these functions.

Monday, 9 May 2016

What are the five factors that drive global supply chain management?

Here are the 5 factors that drive the global supply chain management.
  1. Centralisation of a single-production centre, or more than one that will generate long lead supply times. The production centre is most likely reliant on inbound component sourcing. A buffer against the risk of extended transit times is ideally created by forming an intermediate inventory between manufacturing and customer/distribution.
  2. A strategy of pursuing supplier rationalization needs to be applied in order to remove long established suppliers. This yields admin costs and can bring supply chain time benefits.
  3. Continuous audit reviews should be carried out for both inbound and outbound supply chains. The need for this task is created when comparing the global supply chain with national or local suppliers.
  4. Carriers must consider the needs of the shippers as a way of adding value to the service. There are three ongoing challenges to be faced including multi-modal operation alliances, consolidation for small consignments and hub and spoke systems.
  5.  Having full cognisance in order to reduce payment exposure to the payments of customs duties and tax. Reducing trader costs of compliance and custom duties and maximising the traders’ use of facilities can be achieved through a vigilant customs planning strategy.
Competitiveness can be maximised using a well-trained and organised logistic global supply chain that is fully transparent in inbound and outbound sectors.

Saturday, 7 May 2016

Chit Chat: 2016 Manufacturing Trends According to Industry Experts

Here are 6 of the manufacturing trends that will help firms enjoy a successful year.

Ecommerce for Manufacturing
Consumers are embracing technology and are now more comfortable than ever with buying globally. This provides manufacturers the opportunity to meet the needs of these end customers, making use of ecommerce as a way to communicate and perform transactions between the buyers and the sellers.

Manufacturers can use ecommerce to experiment with their new products before spending large investments, without the need to create traditional brick and mortar stores.  Manufacturers can use ecommerce to increase their share of the parts sales for the aftermarket, to provide customised solutions, integrate ecommerce systems with the IOT initiatives and sell parts directly to consumers.

Advanced Analytics
Advanced analytics will be embraced in manufacturing operations. Assets can now be digitalised that also allows for digital design and distributed manufacturing. Reports will be quickly and easily accessible so logistics managers in manufacturing are able to reduce costs of transportation by using the data to make improvements.

Quality Improvements
Using easy to use analytical software manufacturers are able to improve the quality of products.

Forecasting Demand
Resources can be improved and allocated more efficiently by analysing the changes in demand for the products. Predictive analytics provides manufacturers with valuable sales information that is based on previous sales.

Maximising the Value of Equipment
The manufacturing engineers help the company to get the best value from equipment, using productive analytics they’re able to automate a lot of the analysis process. This predictive analysis can also be used to increase equipment uptime.

Robotics continues to make changes to manufacturing and the sales in robotics will continue to rise. Robotics is being used to link real life factory with virtual reality, human robot collaborations, keeping up with global competition, expanding production capabilities, being available for small to medium sized firms, increasing energy efficiencies and reducing risk of injury from dangerous and dirty jobs.

Friday, 6 May 2016

What are some of the international law/regulation that global logistics entrepreneur must be aware of?

International trade law has to be injected at the core of business that is conducted overseas. All global logistics have to be aware of the law when creating the strategies and the operational and planning process. Here’s a brief overview of international trade law:

In January 1, 1988 the Vienna Convention on Contracts for the International Sale of Goods came into force, sponsored by UNCITRAL.

Global logistics operators need to check the directives operative in the country of importation as the US and the EU have different directives. This relates to the product liability, which is the liability of the producer of a product that may cause injury, damage or loss as a result of a defect.

The intellectual property rights concern the patents, design rights, registered designs, registered trademarks and copyright. Anything that is invented, designed, branded or created are concerned to be a form of property under the intellectual property rights.
Patents concern practically all of the machine products and the processes that are subject to: is it new, is it inventive, and is it capable of industrial application. Patents are used in technology, medicines, paints, electronics, agriculture and photography. At the moment there isn’t a world patent.

Designs have two types of protection. The first is a registered design which protects how the product looks if the product has its own character and is novel. The second is the design right that protects the original design or the original configuration of items, for functional items. There are also some countries that have added protection under their copyright laws.

Trademarks are what distinguished goods or services provided by one trader from the goods or services provided by other traders. The trademark means only the licensees or the company can sell the goods under their trademark signs. The CE is a symbol that has to be included for any product that is sold throughout the EU.

Thursday, 5 May 2016

What’s the range of legislation that now exists in international transport?

Let’s take a quick look at the range of legislation that now exists in international transport.
  1. International Rail Transport – COTIF the Convention Concerning the International Carriage by Rail was signed in May 1980 in Berne. It has been legal in the UK under the International Conventions Act 1983.
  2. Combined Transport. The ICC rules for combined transport document. UNCTAD MMO Convention, UNCTAD/ICC Riles for Multi-modal transport documents. EU International Liability, plus the Convention for Security Containers. The CMR Convention that governs the international carriage of goods via roads was signed in 1956 in Geneva and included in UK law in the Carriage of Goods by Road Act 1965.
  3. International Air Carriage subject to the Warsaw Convention of 1929, or the amended Warsaw Convention of 1995. The convention used is dependent on which convention the countries of arrival or departure have authorised.
  4. Sea Carriage. The Bill of Laden is usually required as the contract evidence and it includes the different international regulations. Main areas include The Hague Riles 1974, Hamburg Rules 1978, Hague-Visby Rules 1988 and the Limitation of Liability for the Maritime Claims that has been included in the Merchant Shipping Act 1995.

Wednesday, 4 May 2016

What are the comparisons between domestic and international logistics?

Those focused on growth often look at the global market as a way of meeting their goals. By trading overseas the firms need to raise their in-house standards and deal with the changes in management that is necessary to become successful.

National logistics operators that focus their energies on local markets will have an advantage. The advantage is having a strong understanding of how the market is structured, knowing the complete infrastructure including the regulations, the supply chain as operated under the national government; they don’t have language barriers to overcome and are also up-to-scratch with the employment laws and so on. This is a definite positive, but the local logistics operators have to be aware of inward investments where the overseas companies move in to enter the local market with their own goods or services.

International logistics operators need to have a supply chain that is designed to incorporate several countries, often covering many thousands of miles. There are lots of complex regulations to work with including customs, taxations, trade law, and market entry regulations and so on. There will be multiple language barriers, agency laws, different capital structures and social structures, etc. It’s complicated and vast, and as a result many choose to make use of 3PLs and 4PLs.

International logistic operators have to know the global supply chain inside out. Transparency throughout is essential, using advanced software and focusing attention on inventory management as well as outbound logistics, inbound logistics, culture and investing in the latest technologies and the development of RFID.

Tuesday, 3 May 2016

What three main features of import logistics and outbound distribution should service include?

Import logistics and outbound distribution

An example of import logistics and outbound distribution can be seen in a manufacturer of electronic goods that source their parts from the Far East that they will use in their manufacturing in Europe.

They have to manage the inbound supply of their components to their production schedules and then distribute their finished products across the Europe. There are three main aspects of the import logistics and outbound distribution service.

  1. Supply chain management – Taking on the despatch orders, keeping a close eye over production, consolidation and making sure delivery is on time.
  2. Information needs to be collected and shared ensuring the entire supply chain is tracked allowing for customers to make changes to their production plans, if required.
  3. Consolidation and distribution to make the best use of the containers in order to cut costs as well as the distribution times to the retailers.

As a result the firm benefits from having a proactive control of the delivery schedules, are able to reduce the shipping costs and integrate their inward and outward distribution.