Logistics mistakes to avoid
Shipping errors and unsuitable packaging
When you export products, you must ensure that they meet all the necessary elements. If not, your goods could be refused when it goes through customs. These elements will be valid for any destination whether it is in Europe or America.
Below you will find some mistakes that happen quite often in the packaging of your products:
ISPM15 standard not met
This ISPM15 standard (International Standard for Phytosanitary Measures) aims to standardize the measures on pallets, crates, and all wooden packaging. They must all be marked in the same way.
Use pallets that are not suitable
You must ensure that the pallets meet all standards and can support the weight of all the goods (especially for recycled pallets).
Not specified when they are special goods
For any transport of special goods (dangerous material, liquid...) the packaging must be marked to be identified.
You do not take into consideration the means of transportation
You must absolutely adapt the packaging of your products to the means of transport you are going to use. If you don't do it, you can find your goods deteriorated.
Don’t take insurance
It is very important to insure your goods. In case of a problem, if you have submitted to an insurance, your products can be covered and replaced. Also, the insurance will take care if your products cause damage to a person, to the environment or to other goods.
Export formalities are not complete
When exporting, you must fill in an export declaration electronically, which will then be evaluated during customs clearance.
The customs have the power to control your goods and seize them or to stop the seizure.
In order to avoid this kind of situation, you must absolutely present all the necessary documents so that they let your products pass.
You will find below a list of certificates that could be asked to you during the customs clearance to show the legitimacy of your goods:
Some documents on your goods that may be requested
- The certificate of origin
It is very important; it indicates the country of production of your products.
This certificate must be kept separate from the other documents to be presented. - Certificate of circulation
This certificate is necessary for shipments to countries with an agreement with the EU. - (EAD) Export Accompanying Document
- Certificate of conformance
-
Movement document
It will be different depending on the means of transport you will use:
Sea freight: Bill of Lading
Air freight: Airway Bill
Land freight : Waybill
The invoices that can be requested
- Commercial
- Pro-Forma
- Extra-Community
Choosing a logistics partner: 9 tips
If you have analyzed your business and it is more advantageous for you to outsource logistics, you will have to choose a logistics partner.
Write a set of specifications
This is a very important step in choosing the most suitable logistics provider.
You will have to indicate all your requirements on this document.
The specifications will allow to see in precision the needs of the company and will serve as a detailed request of the product.
The difficulty will be to define all that will need an external service, the roles, the modalities and the responsibilities etc...
The type of service
In this second step, you will use the specifications and compare them with the services offered by the different providers.
A 1PL logistics partner will not have the same services to offer you as 3PL or 5PL services.
Recommendations and experience
For this 3rd step, you need to find out about the professional experiences of the logistics partners you are interested in at this stage. You will be able to see if he is well experienced and if he is suitable for you.
As a rule, the more experience they have, the better the service you will get. In this sector as in many others, experience allows you to see the skills of a company or a person.
In addition, you should not hesitate to contact them to find out if they have already dealt with clients like you. If so, try to contact them to get their feedback.
Find out about reliability
This is a very important step, you must find out about all the people who will be involved in the project and the profile of the company in question.
In order to succeed in your collaboration, do not hesitate to ask them for precise information on the terms of the contract or the communication methods. Ask them all the questions you think are necessary to prove their reliability.
Analyze the financial situation
It is essential that you analyze this situation and choose a financially stable provider. If your decision is to completely outsource a logistics operation, the risk you are taking deserves that you evaluate in detail the financial situation of the employee.
Evaluate the costs
Surely one of the most interesting steps for yourself if the previous steps are also very important. You have to decide on a price that respects your budget set in the specifications if you don't want to waste money.
We advise you to make an invitation to tender in order to compare the different quotations of each potential logistics partner.
Thanks to this you will be able to see the partners who will be able to match your request and you will be able to see all the different rates proposed.
Don't forget to check that they don't hide any extra costs behind their rates.
Communicate
Everyone knows the saying that communication is the key to success, and this is also the case with your logistics partner.
You will have to define with him the deadlines of the shipments and the way in which you will perceive the information.
Controlling technology and infrastructure
Before signing anything, we advise you to go directly to the company of this potential future partner.
This will allow you to really get to know the people who will be in charge of the project but also to see if the working conditions are optimal.
You will be able to see the technologies used or the infrastructures, these are essential factors. You will then be able to conclude whether or not this partner is compatible with your company.
Check the terms of the estimate
This last step is obvious but it is always necessary to remember that you have to check all the information of the contract carefully concerning the prices, the deadlines etc...
You will see that everything is in order and you will be able to make corrections if you forget or make a mistake.
