Major Global Logistics Challenges for Cross Border

major logistics challenges for cross border
4 MINs

The global business makes the earth go round nowadays. Global trade has been growing at an unprecedented rate and, as a brand, you have to be a step ahead of your peers to make yourself a pioneer. According to the World Trade Organisation (WTO), the annual growth rate of trade has been near about 2.8% over 2014-2016 and is expected to reach an impressive 3.6% by 2017.

To build a global presence you need to be able to solve the challenges of global logistics which will inevitably come your way. You need to scrutinize all actions related to planning, controlling and coordinating the storage of your goods and services as it crosses the border.

Tips for international logistics
International E-commerce logistics complies with the Spoke-Hub distribution paradigm. It represents a system of connections arranged just like a wire-wheel wherein the entire traffic progress along the spokes towards the hub located at the center. It is mostly referred to as a model for point-to-point transit in logistics. Adhering to the norms of logistics, the shipment of a good or service begins with the First Mile and ends with the delivery or the Last Mile. However, in between the initiation and termination of the entire process lies Aggregation, Line Haul and Break Haul and therein lie the major logistics challenges you have to solve in order to sell internationally. Some of these major global logistics hindrances may be summarized as follows:
  • Clearing Indian Customs: Each and every product worth a cumulative value of INR 25,000 or more exported by a seller from India has to pass through a standardized set of Indian customs duty levied on it by the Central Board of Excise and Customs in India. This makes the entire transhipment procedure of the goods time as well as money consuming. It involves a lot of unnecessary legal hassles as well. So, to avoid leaving more and more money on the table without losing much time, look for alternatives to cut down your customs duty costs. You can reclassify your product, correct the product codes, strip down and bundle the products, use trade agreements etc. to bring down customs duties. To make things easier, you can get in touch with a B2B Ecommerce aggregator like Eunimart.
  • Lack of transparency in Customs of other countries: It is a Herculean task to envisage the set of customs that are going to be applied in other countries while exporting goods. Normally you would not be aware of what and how much customs duties will be applicable on your exported goods in the respective destination country of your buyer. In order to abstain from such uncertain and unwanted probabilities, you must be sure of the HS (Harmonized System) Code nomenclature that is used to categorize the traded products. If that sounds complicated and you are unsure of how to do it, you can seek help from a service provider like Eunimart for the same.
  • Tracking: The entire cargo that is being shipped or exported through E-commerce logistics is valuable and is prone to all sorts of vulnerability. Whether by air or water, shipment of goods can be subject to theft, damage, being lost in transit or a target of illicit actions by criminals, etc. The best way to safeguard your valuable cargo is to have a robust end-to-end tracking visibility.
  • Adhering to the promised delivery timelines to the buyers: It is of utmost importance for you as a seller to stick to the promised timelines for the delivery of your goods to the buyer. This is so because any delay in the delivery might actually make the buyers disinterested thereby withdrawing them from making any future orders or, in the worst case, canceling your present order. Since global logistics indulges a lot of step-by-step internal processes and might also be prey to incidental or accidental losses, delivering orders on time might seem an arduous task. To combat this, you can set up a warehouse in the respective destination country of the buyer or you can also set up a bonded warehouse somewhere midway in a free trade zone or a special economic zone and store your goods there. Informing your buyers about the status of transhipment and delivery of the goods can also be pretty helpful in this regard.
  • Global Logistics Prices: Logistics costs pertain to all expenses incurred for transporting of goods (via air or water) to sell internationally. Besides the base fare, many other additional costs like fuel surcharge, service tax, duties and taxes paid fees are added up as well that makes the final price of a good three times of its original price. You can mitigate this problem by bundling up of your products according to the specific categories they belong to. Eunimart can cater to your logistics requirements with dexterity.
  • Insurance: Shipping important cargos to several miles away that are completely out of control can be very risky. No seller wants to take any sort of chances regarding a vessel getting lost and losing complete track of the cargos therein. In order to avoid such unwarranted and undesirable E-commerce logistics situations, you should first have insurance to get compensated for the value of cargos that goes amiss.
A single export transhipment that fails to reach the door of your customers is worth the value of too many! Being acquainted with the major global logistics challenges you generally face on selling internationally and being coached of the E-commerce solutions for it can actually help you attain safe, secure and prosperous merchandising.

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