The process of managing, and shipping goods to cross-border customers is known as international logistics. The goods are produced and shipped to users or customers who are not from the country where the manufacturing takes place.

The prerequisite for international logistics is that the company must have a large enough customer base internationally to establish its warehouses in multiple countries while being headquartered in its country of origin.

Regardless of the industry a firm operates in, international logistics are crucial to supply chain management, fulfilling the critical function of distribution of commodities to customers in overseas markets.

With the availability of professional international logistics services nowadays, companies can take advantage of their experience and the low costs, to not miss out on the opportunity to deliver goods internationally. Such partners can help them to navigate through intricacies by mapping out timelines, specific regulations, and licenses, which are highly digitalized, having systems in place to provide transparency and tracking.

  • Key components of international logistics
  • International logistics operations involve the following aspects:

1.   Storage – Every company needs to evaluate its current storage capacity before planning to expand into new markets internationally. It is necessary to calculate the costs involved in transporting the goods from domestic warehouses to international destinations. These costs can be cut down by building a warehouse closer to the points of shipping. In the case of regular orders of high volume from a particular country, the e-commerce company can build fulfillment centers there for faster picking, packaging, and delivery of products.

2.  Shipping modes – The mode for shipping an order depends upon factors like budget, schedule of delivery, and volumes. The reliability of the mode is another factor to consider when choosing a medium of shipping. When it comes to the transportation of goods across borders, usually several services are involved as one mode of transportation is not enough. Hence, the location from which the delivery is being collected to the place where it must be delivered plays a major role in shipping costs.

3.   Process of shipping – For shipping goods to another country, freight forwarders come into the picture first as they coordinate with carriers to find the best shipping option available. Depending on the mode of shipping, a vehicle is chosen. Once the goods reach the borders, the process for customs clearance is initiated. After customs clearance, the goods are unloaded and dispatched for delivery to their respective destinations.

4.  Additional international shipping charges – While fulfilling an international order, the sellers must pay additional fees that include customs and import duties. Customs duty is the charge levied by the customs department of the respective country and it varies depending on the country where the order must be fulfilled. The value of the goods is also a factor in calculating these charges. It is only after paying customs duty that the package gets the necessary permissions to be delivered to its destination.

  • Reasons to partner with an international logistics company

In a well-connected world, taking businesses to new horizons has become easier. By using international logistics services, a company can go international and avail of benefits like:

  • Global reach:

By choosing the right international logistics company, you can reach a greater number of international clients. The right company has access to major shipping destinations where your business can have access to potential clients.

  • Cost-effective:

International logistics companies fix their prices based on the country to which the delivery must be done. These rates can be negotiated to make the deal more cost-effective.

  • Exploring new markets:

International logistics companies have established networks that enable businesses to explore markets in new countries through partnerships with local delivery partners of those countries.

  • Hassle-free solutions:

The right international delivery partner will have the necessary logistics infrastructure to deliver products internationally. Some logistics companies even have warehouses where they store their client’s products before dispatching them. These services can be used at affordable prices.

  • Economies of scale:

When a company starts manufacturing products for international customers, the number of orders for production increases significantly. By increasing the volume of production, the cost of production goes down, which in turn increases the profit margin. The bulk delivery requirements allow the companies to further negotiate with international delivery partners and packaging companies to cut their costs down.

By utilizing economies of scale, a company can increase its market reach and generate higher revenue.

Additionally, expanding into international markets with a good logistics partner helps in building a strong and positive brand image internationally. Having satisfied clients internationally leads to word-of-mouth marketing too.

  • Logistics and customs clearance 

When shipping internationally, companies need to ensure that customs clearances are also smoothly and efficiently completed. All international shipments are charged with trade and tariff laws. Customs clearance is a complex process that may take a long time, and mistakes could lead to delays. International logistics companies are experts in this field, and they ensure that the correct process is followed to get customs clearance smoothly and on time.

The importance of having an international logistics partner is evident once the advantages have been considered. E-commerce companies that aim to expand beyond domestic borders should utilize the potential of these logistics services to build better relationships with their customers internationally.

These specialist services enable companies to give a great purchasing experience to their customers.