INTERNATIONAL LOGISTICS: WHAT YOU NEED TO KNOW IN 2022

Definition of international logistics

International logistics is a vast field made up of many professions, each representing an important link in what is called in logistics: the supply chain.

It is a global way of managing import and export flows, thanks to several key stages which are the preparation of goods which can be of all types (industrial food products, textile products, dangerous products, pharmaceutical products, etc.), the transport, customs clearance, warehouse storage and delivery to end customers, in coordination with the various players in the supply chain around the world.

In a nutshell: international logistics consists of transporting goods in the best possible time and conditions from one corner of the world to another corner of the world.

What are the challenges of international logistics?

The main challenge is to ensure that the goods arrive at their final destination in as good a quality as when they were dispatched, even with a large number of stages, countries crossed and kilometers covered.

International logistics is a real challenge for companies that base their trade on the movement of goods, with an international dimension. Indeed, perfectly managing all aspects of its international logistics adds an additional link to the value chain of a company because it brings benefits in terms of costs, quality of delivery or even time to customers. end points because these points are all optimized thanks to good management of international logistics.

The multiplicity of stakeholders is a major challenge in international logistics. It involves perfect organization and communication between the different actors in order to guarantee end customers a follow-up of all the stages that the goods will go through. From their departure from the warehouse, until they are received in the hands of the customers, their quality must remain irreproachable.

Logistics transport is also a part that represents a strong challenge. The organization is the key word, because according to the typology, the content, the physical characteristics, the type of packaging, the transport methods will not be the same. (Example: fresh products will not be transported in the same way as hydrocarbons).

Regarding the regulatory texts as well as the laws, they are not the same in each country, it is therefore necessary to know what is applicable to its goods according to each country that it will have to cross.

The optimization of logistics times is important. Indeed, it is necessary to make sure to have the fewest breaks in load, to adopt an anticipated management of the administrative part, etc.

Logistics costs are also an issue to be controlled. We are talking here about the costs linked to the service providers, the means put in place, the logistical strategies used, but also according to the choice of customs procedures through which we will go. Many companies therefore use logistics outsourcing to meet their freight transport needs?

Finally, the risks associated with the movement of goods exist and must be monitored. Care must be taken to protect the goods whether through equipment, human resources, handling, insurance or through compliance with transport conditions.

The stages of international logistics

Packaging and marking

Before dispatch, the goods automatically go through a packing stage at the sender. This step is essential because it is what, if done correctly, will guarantee that the goods are in perfect condition. In addition, it is at this time that the products are marked (quantity, reference, place of shipment, place of destination). This is what will allow during transport and at any stage to have traceability.

Loading

This step is a key step in the whole process. Indeed, depending on the type of products, the number, the volume, the destination, the type of loading used must be adapted. A product will not be loaded in the same way if it arrives at its destination by sea or if it arrives by road (container VS truck).

Storage

This step is an essential passage for the goods because throughout their transport they will be stored in different warehouses while waiting to resume their journey to the final destination, especially for example when it comes to multi-modality logistics transport at the time of change of type of transport (example: arrival by rail in a country, storage in a warehouse and reloading by truck for the rest of the transport

Clearance

Customs rules are more or less different depending on the country, so each of them will have specific laws to respect and documents to be provided when entering a country. This therefore implies studying the subject in order to facilitate the movement of goods around the world.

In addition, it is important or even mandatory to have a detailed knowledge of all the characteristics of the products that we export as well as customs regimes and tariffs, in order to optimize trade.

A detailed knowledge of logistics documents is also necessary.

For example, it will be necessary to do without an international proforma invoice, resembling an estimate and containing the precise terms of the sale.

The certificate of origin, allowing to authenticate the products as well as their origin will also be necessary.

 The packing list is also a useful document in international logistics because it will contain details of the contents of the packages.

Finally, an insurance certificate will be required. This, given by the sender, must cover the goods as well as any damage that may be caused to them.

Delivery, transportation

The choice of carrier is also a very important point in international logistics because it is in his hands that the goods cross the world and it is up to him to guarantee the recipient packages in good condition upon receipt. In addition, paying attention to the choice you make when looking for a carrier can allow you to have more advantageous deadlines and/or rates.

The different players in international logistics

Different players are involved in international logistics and have an essential complementarity to guarantee efficiency in the delivery of products.

• The freight forwarder / the freight forwarder: his role is to coordinate the transport of goods and manage all the administrative formalities while acting as a commercial intermediary.
• The carrier / shipowner: he ensures the delivery of the goods using different means (trucks, ships, planes, trains, etc.);
• The customs agent: he takes care of customs formalities and declarations of goods with the customs services on behalf of customers;
• The logistics service provider: its role is to receive the goods and carry out all the associated handling operations.

In addition, there are other players in international logistics depending on the nature of the business or the delivery method. 

To conclude

If we had to summarize what international logistics is, here is what you should remember:

It corresponds to the management of the flow of goods in import and export

It is a complex field made up of many actors, all of which have  significant importance in the supply chain.

The objective is to transport goods as soon as possible and under the best possible conditions from one corner of the world to another corner of the world.