Though recent years have seen the growth trend slow due to a global economic slowdown, economists forecast the pace of growth to increase.
What does this mean for companies buying and selling with partners in other countries?
For purchasing and sourcing, it means more diversity and complexity in the supply of raw materials, components and finished goods. Businesses must now ask - Who is my supplier’s supplier? What is the country of origin for components sourced in multiple countries, then assembled in another? How do I control quality of a multi-tiered supplier base?
For sales and delivery it means omni-channel distribution, consumer level delivery to clients in other countries, an export compliance program, foreign to foreign sales, deeper consideration for “Terms of Sale”, to name a few.
The layered and stretched relationships with suppliers and customers create more risk in the transport and delivery of goods. Deliveries often require multi-mode transportation, transiting several points, and can be put at risk for many reasons. These include compliance and documentation as you cross borders, natural disasters, labor disruption, carrier capacity, supplier production disruption and more.
To help manage this complexity and risk, 3PL providers can bring significant value in cost management, risk management, and visibility. Choosing the right 3PL to fit your business is critical. Some 3PLs are large, providing a global footprint with well-established services though may be less flexible. Others are smaller, regional providers that may better serve mid to small market companies with more flexibility and customization of services; still other may specialize in specific commodity groups, or geographies.
This ebook is a comprehensive guide to international transportation, that will help logistics managers better evaluate and plan their: