Difference Between Warehousing and Logistics

Difference Between Warehousing And Logistics

Warehousing and logistics are often used together or in tandem because they are essentially two sides of the same coin. Warehousing deals with the storage of goods while logistics focuses on transportation of the goods. Hence you should know each of these terms separately. 

It would be evident from how the two topics are handled that they are each a separate head of operations and at the same time they are intertwined with each other, that they become inseparable for the most parts. The most progressive of organizations aim to have both an integrated logistics and warehousing activity rather than two separate entities. 

Warehouse Management

As the name would suggest, warehouse management is the management that primarily focuses on how products are kept stored in a premise which would be the warehouse. It involves a range of activities that is not restricted to receiving of goods, shipping of goods, picking up the consignment etc. 

The warehouse essentially is a storehouse that is used to store finished goods or partly finished goods as they are transported between different manufacturing facilities. Simple as it might seem, warehousing is something that keeps most businesses engaged full time in its management. 

Logistics Management

Logistics management or logistics is basically a part of supply chain management. It involves the entry and handling of goods at the factory or company premises and ensures the smooth running of the business. 

Basically logistics involve the internal movement of goods, inventory management, transportation management and so on till the goods are eventually sold to the end user. It is essentially dealing with moving finished goods or intermediaries between premises. 

The Connection Between Warehouse & Logistics Management

Both warehouse management and logistics management are dependent on each other for existence which is evident from how they’re handled. The fact is, one would not exist without the other. Such is the strong bond between the two. 

By using warehousing and logistics in tandem you will be able to set up an efficient supply chain process in any industry. It does point to a requirement to translate customer demand to bring out finished products to the markets, so to speak. 

Differences Between Logistics Management and Warehouse Management

Despite the interlinks between logistics management and warehouse management, the activities are indeed different from each other. We shall discuss the differences  below. 

  • Focus

In logistics management, the focus is on moving goods efficiently from one place to another. In case of warehouse management, it is the storage and associated activities that take precedence. 

  • Handle

The handle in logistics management is on flow of products to meet customer needs. Warehouse management on the other hand is all about physically controlling finished goods or intermediaries. 

  • What It Deals With

Logistics management deals with the integration of material handling, information flow, inventory transportation, security of goods, etc. Whereas warehouse management deals with the management of stock, receiving and despatch of goods, inventory management, and so on. 

  • Different Categories

Logistics management offers different categories like recovery logistics, recycling logistics, sales logistics, production logistics, etc. The different types of warehousing include fulfillment centers, controlled warehouses, distribution centers, etc. 

  • Processes Involved

The processes involved with logistics management are organizing and implementation activities. It also includes storage of goods at different locations. Warehouse management processes include unloading, storing, checking, receiving and distribution of merchandise or goods. 

  • Objective

The prime objective of logistics management is to control costs to the businesses using the services. When it comes to warehousing, it aims to maximize profits by keeping operational costs to manageable levels. 

  • Benefits

The benefits to a good logistics management are reduced costs and improved efficiencies. The operations should be able to provide better service to the principal business and in turn keep costs low. In the case of warehouse management, the benefits are better inventory visibility, minimizing business risk, optimized supply chain, spot stocking, etc. 

From the details given above, it is evident that both warehouse management and logistics management go hand in hand. In fact, business operations become smooth when both complement each other in the business.  

Every business’s aim, no matter the field of operations, is to try to reduce operational costs. There is no better way of optimizing costs in the long run than to better control the logistics support as well as the warehousing activities. 

Often it is possible to come across companies that are focused on warehousing or on logistics management alone. Thus, it is to be noted that each of the activities, that is logistics and warehousing, are huge areas of activities that have to be taken care of separately. The best results come when organizations get to integrate the working of the two to have a single unified entity that is the logistics part of the venture. 

And if you’re looking for a reliable and cost-effective warehousing and logistics partner, look no further than Trans Asia Group. We offer a full range of services, from storage to order fulfillment, so you can focus on what you do best. 

Plus, we’re always up for a challenge, so whether you need help with a one-time project or ongoing support, we’re here for you. Contact us today to learn more!

What Is Warehouse Logistics?- A Necessary Guide 

Warehouse Logistics

Warehouse logistics is the process of storing goods for sale or distribution in an efficient and cost-effective manner. There are many different aspects to warehouse logistics, such as storage, transportation, and distribution. In this guide, we will walk you through the basics of warehouse logistics. 

What Is Warehouse Logistics? 

An integral part of any supply chain management is warehouse logistics. Products, when they are not moving from one part of the country to another, are stored in a warehouse. At any point of time, there are products being shipped, received and stored in warehouses. 

Warehouses are places where finished or partly finished products are stored before they are shipped out to customers or onto the next stage in processing. 

It is important to optimize the use of warehouse space. As often, there is a cost associated with storage and handling of products at the storehouse. It is thus important for any business to have a well-developed plan to use warehouse space optimally. 

At this point, it must be pointed out that warehousing also produces data that needs processing. By analyzing product demand and delivery schedules, it would be possible to keep costs of warehousing to optimal levels. There are some points that spring to mind immediately when someone speaks of warehouse logistics. They have been outlined below. 

  • Getting the location just right. 
  • Need for sufficient capital to set up and manage the warehouse. 
  • Have an optimized floor plan. 
  • Get qualified professionals to man the operations.
  • Select the right machinery and equipment for the operations. 

Benefits Of Warehouse Logistics 

Here are some benefits a good warehouse logistics plan brings to businesses: 

  • Efficiency

It is seen that introducing a workable warehouse logistics policy brings greater efficiency to the whole activity. Wastages of products are kept to a minimum, and customer orders are fulfilled with the least bit of fuss and cost to the organization. 

  • Inventory Management

A proactive warehousing plan produces efficiency in the management of inventories. The sum of money that is tied up as inventory would be kept to the least possible. 

  • On time delivery

The very need for efficient warehousing is to deliver the products to the end customer or to the next stage of manufacturing in a timely manner. 

  • Operational Costs

There is no denying that by using an effective warehousing policy, it becomes easy to optimize the operational costs of a production line. 

  • Customer Satisfaction

The most desirable result of an effective warehouse logistics plan is that customers are always satisfied. By customer, we could mean the immediate end use of the products or the next stage in a manufacturing process. 

Types Of Warehouse Logistics 

Warehouses can be classified into 5 different types: 

  • Private Warehouses

These are warehouses that are established by companies and individuals for their private use. Examples of this type of warehousing include the ones done by farmers, wholesale warehouses near shopping centers, etc. 

  • Public Warehouses

Warehouses owned by governmental and semi-governmental bodies that are established for public use come under this categorization. Most public warehouses can be made used by people by paying rent to do so. 

  • Bonded Warehouse

These warehouses are custom notified and used to store restricted items of trade. They are also known as licensed warehouses. 

  • Co-operative Warehouses

As the very name would suggest, these warehouses are established and run by co-operative societies. They use the collective power of societies to bring in efficiencies that are otherwise not possible. 

  • Distribution Centers

The defining aspect of the distribution warehouses is the time that is spent in keeping the products in storage. This is kept to a bare minimum in the case of distribution centers. Most distribution centers have large areas with a quick movement of goods in and out of the space.  

How To Budget Warehouse Logistics? 

Budgeting for warehouse expenses is taken in five different ways. Each part of the budget has a vital role in the efficient functioning of logistics. This applies to almost all the different types of warehouses discussed here and does vary in intensity with each type as well. 

  • Line Supervision

This is the cost associated with establishing a line of movement from entering the warehouse to exiting the facility. The longer the storage at a facility the more the supervision cost incurred. 

  • Clerical costs

The manpower costs involved in verifying the storage and movement of goods come under the clerical cost of setting up a warehouse. 

  • Information Technology

The cost incurred in purchasing and implementing the controlling software in a warehouse constitutes this cost. 

  • Supplies

Supply material like paper, packaging material and so on constitute this part of budgeting. 

  • Insurance and taxes

Most governments have taxes and policies that govern warehouse use, that involve the taking out of insurance policies to protect the interests of the people who use the facility. 

Warehouse logistics is an essential part of the supply chain and plays a major role in ensuring that products are delivered to customers on time and in the correct quantities. By understanding the basics of warehouse logistics, businesses can optimize their supply chains and improve their bottom line. 

Also Read: Different Types of Logistics

And if you are looking for a warehouse logistics service that can take care of your inventory for you? Look no further than Tassgroup. We are experts in the field and can handle all of your needs, from storage to distribution. Contact us today to learn more about our services!

10 Most Important Shipping Documents for Transporting Cargo

Whenever you take the initiative to ship cargo, it is critical to understand which documents are in need for the shipment. And it is significantly crucial to get approved legally for the safe shipping of your cargo. Listed below are some of the mainly considered documents needed for cargo shipping. 

Commercial Invoice

Exporting your cargo without the Commercial Invoice would be the biggest blunder. It is an invoice sent to the purchaser by the seller. It’s a criterion for customs clearance.

Bill of Lading & Sea Waybill

The Bill of Lading is a comprehensive document that must be in your hands. It is a transport agreement, and it provides critical shipping information. It is another important aspect of sea transport and evidence that the carrier obtained the items in fine shape from the shipper. The person who has this document is also in charge of the shipping.

This bill can be considered as a contract for transportation. The Sea Waybill, on the other hand, is not required for goods delivery and will only be given out as a cargo receipt. As it is non-transferable, it is required to avoid the presence of a third-person.  

Packing List

Another necessary shipping document for moving cargo internationally is the packing list. It’s a comprehensive list of the items listed on the Commercial Invoice. It also includes descriptions of the items’ packaging characteristics as well as the marks and numbers on the outside of the packages.

Customs declaration for exporting and importing

An Export or Import Customs Declaration is to report the products that are imported or exported. This customs declaration is critical when transporting cargo internationally. In legal terms, a Customs Declaration expresses a person’s desire to place cargo under a specific customs procedure. The Declaration is needed to clear customs and compute any applicable tariffs or taxes on the cargo. 

Rail or Air Waybill

You will receive an Air or Rail Waybill based on your means of transportation. An AWB is another name for a bill of lading. However, because it is in a non-negotiable form, an AWB provides minimal security than a bill of lading. For the consignor, the AWB also functions as a receipt (the shipper). This document includes the shipment’s destination address with the consignor and consignee’s contact information. 

The Rail Waybill, on the other hand, is a document used for railway shipments. After obtaining directions from the shipper, the shipping agent or railway company can set this paperwork.

Letter of Credit

In an international commercial transaction, a Letter of Credit is the most common form of payment. It is irrevocable by default. This letter is a bank’s pledge to the seller (the exporter) on behalf of the buyer (the importer) to pay a defined sum in an agreed currency. Furthermore, the seller is supposed to present all required paperwork by a date. It also contains data about the items’ description, quantity, technical description, and documentation requirements.

Certificates (production, vessel, phytosanitary)

You may be requested for one of the following certificates as part of primary shipping paperwork, depending on the type of cargo:

Production certificate

This Certificate refers to the components or methods of manufacture that are products of renewable sources and permitted processes. It is necessary to get permission to carry cargo into or out of regions where production laws may govern.

Vessel certificate

A Vessel Certificate’s prime aim is to certify a vessel’s ownership. One can easily get the data about the age of the vessel and the maintenance through Vessel certificate. The certificate is generally part of the Letter of Credit application process.

Phytosanitary Certificate

A phytosanitary certificate assures the pest-free status of plants and plant products. It also mentions that the shipment complies with the importing country’s phytosanitary criteria.

Notice of Arrival

The Arrival Notice, also known as the Notice of Arrival, is another crucial document used when shipping. The package has reached its destination, according to this document. It contains pertinent information, including the item description, shipping details, destination country customs costs, and the ocean freight carrier’s contact information. It gets approved by the ocean freight carrier’s destination agent to the receiver and any other parties who may be required to inform as per the Bill of Lading.

Certificate of Origin

A Certificate of Origin is a document that specifies the country of origin of a product or commodity. It is required consistently. This file provides details about the item, its intended destination, and the exporting country. It’s a crucial document because it decides whether items are allowed for import and whether they’ll be subject to the act.

Importer Security Registration (local customs requirements)

An Importer Security Filing might get needed for your shipment. It is a law by the United States Customs and Border Protection that solely applies to ocean cargo imports. Importers should transmit the essential data for this documentation to their US customs broker before placing their shipping order since it must get lodged with US customs and border protection 24 hours before departing from the last origin port. The seller’s and buyer’s names and addresses, the importer of record, the final consignee, the manufacturer’s name and address, and the country of origin are all required information.

What are Cargo Ships? [All You Need to Know]

Shipping plays a significant role in world trade and has a crucial influence on the world economy. Cargo shipping is the most common type of transportation in international trade. It is one of the most efficient yet cost-effective ways to deliver goods on time, safely, and at an affordable cost. 

What are cargo ships? 

A cargo ship is generally known as any merchant ship or vessel that transmits massive goods and commodities from one harbor to another. Cargo ships are usually designed and built specifically for this purpose, equipped with cranes and other mechanisms for loading and unloading, and they range in size from small to large. Each year thousands of cargo carriers transport goods across the world’s seas and oceans, exporting most of the world’s goods and services.

 A cargo ship is designed with welded steel, and they typically last 25 to 30 years before being demolished. However, cargo Shipments are still considered the best way of handling business goods and transferring trade goods today. It is relatively popular for managing delicate materials due to its safety and low cost.

Different types of cargo ships

In the case of sea freight cargo ships, different modes of transport are available depending on the cargoes involved.

Container ships

Container ships are the most common ships used for transporting non-bulk cargoes at sea. Container vessels (ships) are vessels constructed to hold cargo packed into containers of various kinds. Container ships are one of the most potent methods of transporting goods. These ships have made it possible to transport massive cargo at once, effectively changing global trade.

Due to their popularity in international trade, container ships are generally highly automated, and newer models emit zero emissions.

General cargo ships

A general cargo ship is specialized for carrying loose packaged cargo of all kinds. There are various kinds of general cargo ships, each having its hold or

decks. Food, clothing, footwear, chemicals, machinery, furniture, and motor vehicles are mainly transported on general cargo vessels. It’s also known as a multi-purpose vessel because of the diversity of loads it can handle and its flexibility.

RO-RO vessels

Shipping vessels designed for transporting wheeled cargo aboard, such as cars, trucks, semi-trailers, and buses, are known as roll-on/roll-off (RORO) ships. These ships transport wheeled cargo that is stuffed on its own wheels or with the assistance of a platform vehicle. There is usually a series of decks connected by ramps or elevators and doors positioned at the knot or stern of the ship. 

Reefer ships

Reefer ships are containerships that exclusively carry refrigerated containers. Before the advent of reefer containers, reefer ships were a significant means of transporting goods under controlled conditions. Unlike conventional container ships, reefer ships have a bigger size, different design, power generation, and distribution equipment.

Breakbulk ships

Breakbulk ships are possibly the oldest kind of cargo-carrying vessel still in use at sea. Shipping breakbulk by the ocean has become a common method of importing and exporting goods that do not fit in standard-sized shipping containers or cargo bins. The most common breakbulk cargos include steel girders, structural steel, oversized or heavy goods, construction equipment, machinery, and vehicles.

Bulk carriers

Bulk carriers are the best choice for moving solid bulk loads. It is efficient for carrying small or loose crush units, including cement, grains, and minerals. They use spoon-shaped cranes for loading and unloading, and we can see that there are well-defined areas on their decks for this purpose.

Oil tankers

Oil tankers are specially designed tank ships that transport crude oil. Ships that transport oil differs in technical characteristics from cargo ships that transport goods, such as the tight seal against oil leaks, the structure’s resistance, and the pumping system designed for this. These massive ships have to berth on the open seas because they are so large.

Gas carriers

A gas carrier ship is a kind of freight-carrier ship that is designed to transport all types of liquefied gases to their final locations.

How many containers fit on a cargo ship?

However, many people still use containers for storage and transportation despite their great use as construction materials. Shipments of goods by cargo have been used internationally for decades and remain the most popular means of transferring goods from one country to another. It is advantageous since it allows large amounts of cargo to be moved without causing any disruptions or logistical problems.

Every day, freight liners transport thousands of units safely and securely with fewer than twenty personnel. There are different sizes of container ships, and most hold anywhere from 10,000 TEU to 21,000 TEU of cargo. Cargo ships are generally divided into two sizes: the 20ft (also known as a TEU) and the 40ft (also called an FEU).

Considering that containers are measured in TEUs, TEU capacity is the number of containers that can be placed on the deck or below the deck of a vessel. The maximum number of units that can fit on a freight liner will naturally vary depending on the size of the unit. Nowadays, the biggest freight liner can transport more than 21,000 TEUs.

Each 20ft unit measures about 20ft by 8ft by 8ft, and it has a total volume of about 1360ft3. By multiplying the volume of these containers by the number of TEU containers the boat can carry, the boat can hold a total of 29,121,680ft3.

 

Freight Charges: What You Need to Know

Freight Charges

The complexity of providing timely and cost-effective distribution of finished goods from industrial facilities to customers all in the correct amounts in a timely fashion and coordination with production processes, despite suspicion due to the self-sufficient decision-making of clients, is daunting. As your business needs to know the freight costs of your logistics, this blog will try, unpack and help you understand the freight charges and their different types.

Freight is the transportation of goods, thus, the charge that gets levied to deliver cargo from its site to its destination by any carrier is recognized as freight charges. The freight charge is calculated based on the type of mode of transportation that you select for the transportation of your goods and that includes packaging, palletizing, load or unload costs, carrier fees, and insurance costs. The amount of freight charge depends on the distance between the pickup place and the place of destination to deliver the cargo and is paid by the person who wants the goods transported. 

Freight companies charge different freight charges as the total weight of the goods, and the distance that the goods will travel is also taken into account while calculating. 

The shipment of goods may be transported from one location to another using freight prepaid or freight collected based on the incoterm rules. For calculating freight charges, many shipping services, especially air carriers, use a dimensional weight that takes into account both weight and the volume of the transporting goods. 

The purpose of taking the volume into account is to assess the space that the freight will take up in the transporting mode and you can select to transport your freight on a ship or airplane among other modes. 

There are over ten types of freight charges and among those; the prevalent type is the consignee collect.  Let’s check out the detailed explanations of the different types of freight charges that are important for smooth and profitable freight shipping.

1. Consignee Collects

The consignee is a buyer responsible for paying all the freight charges once they get the delivery. The consignee, typically the buyer, is considered responsible for customs declarations (a statement showing goods being imported) and they will also have to fill out forms and file necessary taxes.

2. Cash on Delivery (COD)

Once the goods are delivered, the carrier collects freight charges and then forwards the payment submitting them to the shipper for reimbursement. For this type, the carrier usually charges an additional fee for the service. 

3. Third-Party

A third party typically refers to a professional logistics company that pays the freight charges on behalf of a shipper or consignee. This option is especially helpful when the freight order is more complicated or the consignee receiving the shipment is new to the business and lacks experience. 

4. Prepay and Add

In this type of charge, the shipper pays for freight and then charges the customer. This option benefits the customer and works if the customer-shipper relationship is good. In this situation, the shipper can often negotiate better deals than the customer could do on his own. 

5. Free-on-Board (FOB) Origin

Free-on-Board (FOB) implies that the supplier gives up its rights to the merchandise and pays for the shipping cost which usually includes insurance costs from production to a specified destination, after which it becomes the responsibility of the buyer. 

In FOB Origin the buyer is accountable for freight and damaged goods even if no FOB terms were communicated or mentioned in the contract or purchase order and in a FOB charging situation, the same goes for consignees at the shipper’s dock. The same rule gets applied to the consignee, the consignee pays all of the associated costs and it will be the buyer’s responsibility if the goods get damaged in any way. 

6. FOB Destination

In this case, the freight charges are paid by the shipper after the title for goods passes at the consignee’s dock. Therefore, the charge of the freight is prepaid before shipment.

7. FOB Origin, Freight Prepaid

This charge is similar to FOB Origin because the freight becomes the responsibility of the consignee at the shipper’s dock and here, the shipper pays all the necessary local freight charges.

8. FOB Destination, Freight Collect

As part of FOB Destination, the title for goods passes at the consignee dock, and the consignee must pay all freight charges.

9. FOB Origin, Freight Prepaid and Charged Back

In this system, the freight becomes the responsibility of the consignee at the shipper’s dock while the charges for the freight are paid by the agent of the consignee at the origin. The shipper later sends an invoice to the consignee for the freight charges paid by the shipper.

10. FOB Destination, Freight Collect, and Allowed

Once the goods reach the destination after the title for goods passes at the consignee dock, the consignee pays the carrier’s freight charges along with the local carrier charges. Then deducts the freight charges from the seller’s invoice for the goods but here the risk and responsibility fall on the consignee to pay and settle all the charges at the destination.

10 Trends Shaping the Future of Logistics

Trends Shaping the Future of Logistics

Technology is breaking the boundaries and is accelerating its ability to help businesses do more with less. The effects of technological change are creating immense transformations and changing how people do business globally. 

Disruptive forces are always at work, reshaping the way companies think about innovation, and the disruptive innovations originate in low-end or new-market footholds. They operate a business, developing strategic thoughts on technology and the future. 

Logistics evolved into a business concept and now leads to a significant increase in workflow flexibility and performance. 

The logistics industry has always been one of the most critical industries in any country and has been facing several challenges in recent years, from new regulations to changing customer demands and more. 

As more companies join this dynamic sector, the industry will undergo significant change and will have important implications for businesses around the globe. Newer technology has also improved the logistics sector by lowering costs and reducing mistakes as the latest trends connect them to capitalize on established and traditional technologies. 

Logistics trends show that it also results in a significant impact on customer service and a major increase in customer loyalty. Knowing the industry trends, the logistics sector is already being set in motion to help shape how we live and work for generations to come. Like every other industry, it becomes increasingly important to stay ahead of trends and innovations shaping the future of logistics. 

In this blog, we’ll cover the top ten trends shaping the future of logistics.

1. Artificial Intelligence

Advanced AI-based cognitive automation technology helps to make more accurate predictions and route planning. Artificial Intelligence plays a crucial role in managing warehouses, enhances administrative intelligence, and speeds up data-intensive operations in the logistics sector. AI solutions have numerous applications and can be combined with machine learning to cope with market fluctuations.

2. 5G

The digital management of logistics with the advent of 5G opens up a whole new set of opportunities as warehouse efficiency, performance management, and the most efficient use of logistical resources can all be improved with data analytics. 5G might potentially push the logistics industry to full digitalization and the logistics industry could add so much to the global economy in the future.

3. Blockchain

Blockchain technology is a distributed, encrypted computer filing system designed to allow real-time, free from tamper records that is a relatively new concept in the logistics sector. It will enable smarter logistics automating commercial processes offering new solutions that could make logistics operations more efficient, secure, and transparent.

4. Environmental regulation and sustainability

The drive to have a sustainable environment is integral and businesses in the past have adopted a compliance-led approach to sustainability or have taken steps to minimize the environmental effect. The objective of attaining a net-zero environment will considerably impact operators’ logistics and warehouses’ construction. 

5. Last-Mile Delivery

The trend of businesses moving towards last-mile delivery is often ineffective and represents a substantial proportion of the total cost of the movement of goods. To achieve sustainability, logistics firms will also direct a lot of their strength into last-mile efficiencies. Seeing how this shift will affect their future business models and methods, various technical outcomes can be deployed.

6. Globalization

Globalization has a dramatic impact on strategic sourcing, and logistics excellence as ‘international’ has become the standard and logistic solution providers need to enable that trend. As businesses go global, mature and emerging markets have become a part of the overall business growth strategy for many companies.

7. Cloud Computing

Cloud-based logistics systems are becoming more and more popular in the logistics industry as they eliminate connectivity barriers, allowing businesses to collaborate and exchange data without risk. Businesses in logistics can find significant benefits by adopting this new technology and pay-per-use models with a low capital investment are even possible with cloud computing solutions for logistics companies.

8. Internet of Things

IoT devices provide information to logistics companies and increase inventory management efficiency by increasing visibility. The Internet of Things will connect nearly everything in logistics together, increasing efficiency, real-time inventory visibility, and fleet management. This allows for more precise visibility of goods and helps in theft reduction.

9. Electric fleets

Gaining a foothold now in the electric mobility sector will give you an edge over your competitors and logistics companies can do a lot. Electrifying an entire fleet often poses greater challenges than electrifying individual vehicles and those vehicles will have the capacity to run dense and short routes when providing retail practice.

10. Autonomous Vehicles

Autonomous vehicles are to be a trend in the logistics industry and can reduce human errors, boost vehicle safety, and transport products safely. These vehicles improve first- and last-mile delivery quality making it easier than ever before to ship goods around the world without worrying about driver shortages.

The logistics industry is a global and complex business that has significantly benefited from recent technological advancements and it will continue to do so as further progress is made. Due to fast development in emerging technologies staying up-to-date on the latest trends in logistics is more important than ever. As technology advances, the right strategy can help you thrive for the future of your business.

How To Send Goods To Other Countries?

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Shippers play a vital role in the economy of most countries and international trade. It is a global network that connects nations, economies, enterprises, goods, and consumers. 

Sea transportation and air transport are the most common types of transportation in international trade. With this technology, goods can be imported and exported in a timely and efficient way that was otherwise not possible.

The term shipping refers to the process of dispatching goods for export. 

Organizing a shipment involves many steps and stages and is a labor-intensive process. It comprises booking the goods with a transportation company and delivering them to their destination. The exporter and importer interact throughout the entire supply chain facilitating international shipping.

Exporters can choose between two shipping options when shipping by the sea – Full Container Load (FCL) or Less Than Container Load (LCL). 

The full container load shipping method occurs when the consignment fills a whole shipping container. Transport of large consignments by the sea in the shortest possible time can be accomplished via this method.

For exporters with smaller shipments, sharing a container with other exporters is an option that requires paying only for what they need. This type of shipping is known as LCL, and it can be used for low or moderate volume, non-time-critical shipments. 

What is international shipping?

International shipping can be defined as the process of transporting goods and materials from one country to another. It is a vital part of the global economy, and enables businesses to trade with customers in other parts of the world. 

There are a number of different methods for transporting goods internationally,  including air freight, sea freight, and road transport. Each method has its own advantages and disadvantages, so it is important to choose the right option for each shipment.

There are many rules and regulations involved in international shipping, which can be a complicated process. 

To effectively import or export freight, you must be aware of and adhere to various procedures and documentation for your shipment to clear customs. It is for this reason that most businesses dealing in import and export partner with freight forwarding companies

International Shipping Process

 1.  Request freight quotes  

The initial step is to request a freight estimate. Before you do that, you must make sure to share with all freight forwarders in your network the following information: shipping date, origin and destination port, commodity and packing details, and type of freight. 

When this is done, you will either be able to request quotes directly from your freight forwarders or you will be able to opt for digital freight forwarders to automate these processes and get quotes within seconds.

 2. Select freight forwarders

We must finalize the freight forwarder or carrier whose rates & other factors like network and support are the best match for our needs. 

Recommended Read: How to Choose a Shipping Carrier?

It is best to choose the best freight forwarders to get real-time delivery. Only digital freight forwarding provides real-time quotes, and the shipment process is monitored through the application, enabling exporters to maintain monitoring of their supply chains.

3. Preparation of Required Documents

After deciding on a freight forwarder, the following step is to prepare the relevant paperwork. The following documents are included:

  • Performa invoice
  • Commercial invoice
  • Packing list
  • Certificates of origin
  • Shipper’s letter of instruction
  • Bills of lading
  • Dangerous goods form
  • Bank draft

4. Validate the shipment’s details

When you’ve finished preparing for the shipping procedure, double-check and validate the shipment information. The origin of the shipment, the B/L number, the type and quantity of containers, and the reference type and number must all be verified. 

5. Raise booking request/ delivery order to the carrier

You can now book your freight provider once all of the confirmations have been completed. All you have to do now is update all of the information with the freight forwarder you’ve chosen. Date and location of origin, destination date and location, container type, and so on. 

6. Keep track of shipments

You can begin tracking your shipment after you get a booking email confirmation from the freight forwarder. They provide more than simply tracking service and real-time management; they also provide platforms for invoicing, document, and contract management. 

7. The shipment passes through customs

Customs will evaluate your shipment to see if it complies with their requirements. The shipment will not be set up with an issue and can pass through. Unless you pay the balance, your shipment will be held in customs custody. 

8. The bill for customs duties and taxes should be reimbursed

Taxes and duties are included in the bill directly from the forwarder, so they must be paid by the forwarder. Several forwarders do not accept checks or bank transfers. You will be billed immediately whenever you order an inspection service. 

9. Receive the shipment

You will receive the consignment as soon as it arrives at the port if everything goes correctly. 

As a result, the shipping process encompasses the movement of commodities and documents from one location to another. The movement of goods and papers from one country to another must be highly coordinated for the procedure to be completed properly. 

In conclusion, there are a few things to keep in mind when shipping goods to other countries. Remember to research the country’s customs regulations, choose the right shipping method, and package your goods securely. By following these tips, you can ensure that your shipment arrives safely and on time.

If you are looking for a reliable international shipping service? Look no further than TASS group! With years of experience in the industry, we can get your packages to their destination safe and sound. Contact us today for a free quote!

FCL Vs LCL: How To Choose The Right Container Load?

FCL Vs LCL

The shipping container industry has been dominated by maritime shipping for decades. Waterways serve as one of the most efficient pathways to transport cargo containers globally. If you’re transporting items of any size via maritime transport, you’ll soon question which is more convenient: LCL (Less Than Container Load) or FCL (Full Container Load).

Cargo can be shipped internationally through intermodal transportation. Choosing a transportation method for a shipment is significant, and the shipper should consider aspects such as size, price, and delivery deadline. 

Before making a decision about shipping freight by sea, FCLs and LCLs are the terms that should be thoroughly considered. Read on to find out if FCL or LCL is the better option for your unique business needs!

What are FCL and LCL? 

FCL (full container load) 

A full container load (FCL) consists of a container that is exclusively used by one customer. A full container load (FCL) is a single container reserved by the shipper solely for the shipment of their cargo. 

There is no obligation for the shipper to swap containers with cargo from other shippers. It increases safety and streamlines the management of ocean freight transportation. 

Shippers who have a high volume of merchandise that can fill a whole steel shipping container may explore this option for shipping. Because the cargo box is reserved especially for them, the transporter does not have to exchange it with any other consignment. It has the added benefit of enhancing security and easing the transportation process. 

Since FCLs are owned by only one shipper, the cargo containers do not need to be fully loaded with goods to be FCLs. Even if the cargo is half-filled or partially-filled, the boxes can be fitted. Because the complete cargo unit does not have to be emptied and unpacked into separate loads before being delivered, an FCL shipment is delivered faster than any other. 

LCL (Less than container load)  

Less than Container Load (LCL) is useful when the exporter does not need to book a complete container because the cargo does not require that much space. 

An LCL container is used for smaller shipments that need to be shipped cheaply and on time. LCL means sharing a container with freight shipments from several different shippers. 

FCL gives you total control of your container, whereas LCL combines your shipment with others. 

People that need to transport a little amount of cargo prefer this mode of transportation. They are a more affordable option than FCL shipments, but they take longer to get to their destination. LCL cargo consists of a wide range of items that must be shipped to various destinations worldwide.

The task of transferring products via LCL is significantly more difficult because there is more paperwork to process. Because items are categorized differently for each client who must receive the container, LCL takes longer. This takes days to finish since all of the goods must first be unloaded from the cargo container, followed by clearing customs and dispatch.

Differences between FCL and LCL 

  • Quantity of goods  

The volume of shipment refers to how much room the cargo in the shipping container takes up. It is frequently a primary consideration in whether you should ship your cargo in an FCL or LCL container. An LCL shipment is usually the best option for shipments that are less than 13 cubic meters in volume. 

  • Shipment cost

When determining whether to ship FCL or LCL, the cost of shipping is a significant factor to consider. When you choose FCL, you will be charged the cost of a full metal cargo container, regardless of whether the container is fully loaded or not. LCL shipments are combined with other freight in a single box, they are a more cost-effective option because the prices are shared with the other shippers. 

  • Safety of goods 

All shippers naturally want their shipment to arrive at its destination safely and securely. Shipments must be protected from any unforeseeable catastrophes that could derail or harm the entire delivery. 

An FCL container is safer than an LCL shipment because the latter grants the cargo shipper exclusive rights. An LCL shipment does not give the shipper any authority and could cause your cargo to be damaged in transit. 

  • Speed of delivery 

When it comes to moving cargo via shipping containers, every shipper and consumer wants their package to arrive on time. It is critical to determine if FCL or LCL shipments are required based on the shipment’s deadline. For urgent shipments that must arrive ahead of schedule or on time, FCL is the superior alternative. This is not the case with LCL shipments, which include a variety of other shipments from various shippers that need to carry their cargo to several places. 

Wrapping it up!  

In conclusion, it is important to understand the difference between FCL and LCL container loads in order to make the right choice for your business. FCL shipments are generally more expensive but offer more convenience and security. 

LCL shipments are less expensive but can be more risky and time-consuming. 

By weighing the pros and cons of each option, you can make the best decision for your company’s needs.

 

How to Choose a Shipping Carrier?

When it comes to running a successful business, one of the most significant decisions you’ll ever make is selecting the appropriate shipping carrier. Choosing a shipping carrier is critical to maximizing your shipping strategy. When it comes to selecting one, it’s critical to consider the services that will meet your needs and those of your customers.

Each carrier has advantages and disadvantages, and it can be hard to determine which one is best. The carriers you use are determined by several factors, including what you’re shipping, where you’re shipping to, how much your parcels weigh and how large they are, and how much you’re trying to sell your products for.

Currently, there are numerous numbers of shipping carriers in active operation, each with its own set of services. What works for one company may not be the best fit for yours, so do your research before getting signed to any agreements or having committed to any carriers. Here are some important factors to consider when selecting a shipping company.

Factors to consider when choosing a shipping carrier

  • Type of the product

The type of product you’re shipping is an important factor to think about when selecting a shipping carrier. Your shipping costs are greatly influenced by the weight of your packages. The size and shape of your parcels can also influence your carrier selection. For example, if you’re sending a small package, you can use courier delivery services.

  • Cost, quality, and time

Pricing is an important consideration when selecting a carrier to ship with, and it is usually one of the first inquiries we receive. However, there are two additional factors to consider when selecting a carrier. In addition to pricing, it is critical to think about both quality and delivery time.

As a shipper, you must identify your company’s needs and the considerations that are most important to you. If you ship with the cheapest carrier, you may be compromising quality and delivery time. Considering these factors when determining prospective carriers will decrease the risk of choosing a new carrier.

  • Services

Working with multiple companies if your company requires more than one service will significantly raise both your time investment and your expense. It may be advantageous to collaborate with a carrier that provides numerous services and can meet all of your company’s requirements.

  • Reliability

A reliable shipping carrier can aid in the development of your company’s positive reputation, allowing you to develop your business and meet your customers’ requirements. Consider shipping with a carrier that has a lower expenditure but can never distribute your parcel at the correct time, having caused your cargo to miss its inspection window and not reach the destination on the correct time. An untrustworthy carrier will cost you more money, as well as affect your company’s image.

  • Capacity

Not every shipper will be a good fit for your company. In some areas, some carriers are more powerful than others. Finding a carrier with a network that includes the lanes through which your freight will travel is critical to creating a beneficial relationship for both parties.

  • Safety

Safety is a critical factor when it comes to choosing an appropriate shipping carrier for your business. Shipping with a carrier that emphasizes safety can help to improve your supply chain image, which can lead to higher sales. Customers are concerned about a company’s safety rating and prefer to ship with companies that have a decent image.

  • Sustainability

Shipping with a carrier that prioritizes sustainability and environmental consciousness can help to improve the image of your supply chain and result in increased sales. Customers care about environmental sustainability and, like safety, prefer to do business with companies that have a decent image for being ecologically responsible.

  • Shipping software

Some carriers offer shipping software, which simplifies and saves time in the shipping process. The right software can assist you in avoiding errors such as mislabeling deliveries, picking the incorrect service level, or forgetting to include an item in an order. It can also assist you in selecting the smallest box possible for each order, preventing you from wasting money on larger-than-necessary shipments.

  • Carrier’s reputations

To eliminate lost or delayed deliveries or other undesirable outcomes, conduct a thorough search of your prospective carriers’ track records. Trustable shipping companies usually provide both tracking and insurance. Tracking enables you and your consumers to go digitally and see where a parcel is in transit, eliminating surprises. 

  • Tracking Matters

Having chosen a carrier that offers to track is a remarkable sign. This ensures that both you and your consumers are at comfort while the delivery process is being monitored. It has notifications set up to notify your consumer in real-time when the parcel has been sent when it is on its way, and when it arrives at its location. 

For more information or for help with your shipping needs, you can reach out to our shipping experts at Tass Group. We have served over 30,000 customers worldwide to date and have an impeccable track record. Contact now for a free quote!  

Difference between Logistics & Supply Chain Management

Difference between Logistics & Supply Chain Management

Although supply chain management and logistics have many parallels, there is a difference between logistics and supply chains. Recognizing every function could assist businesses to improve procedures, improve consumer relations, and achieve a competitive edge.

Logistics is concerned with the internal flow of commodities, whereas supply chain management is concerned with operations involving independent companies.

Despite certain similarities among these two systems, they are distinct constructs with distinct connotations. Logistics relates to the transportation, warehousing, and transfer of commodities, services, and communication inside the broader supply chain, whereas supply chain management is an encompassing process that includes all different operations to generate market edge.

Defining Supply Chain Management

The action that produces final commodities and distributes those to consumers is referred to as supply chain management. SCM additionally concentrates on streamlining supply chain procedures for the convenience of consumers and business associates. 

If an organization maintains transparency over its supply chain, it will only maximize and continuously refine SCM. This transparency allows businesses to monitor commodities and services that progress through the supply chain, making it far simpler to watch whether everything is functioning as expected. It moreover provides an additional chance for decision-makers to adjust to distractions or other barriers.

SCM entails managing a wide array of sub-suppliers (such as raw material suppliers), distributors, producers, logistics operators, distribution companies, dealers, and end consumers. The supply chain’s numerous partners have a variety of practices. Relationships can be straight, including between components and resources providers, producers and merchants, or horizontal, such as when a corporation unites with or obtains a related business that works around a similar supply chain phase. 

What Exactly Is Logistics?

Organizing and implementing the preservation and transit of items among various stages in the supply chain is part of logistics. Logistics integrates infrastructures, persons, technology, as well as other assets to guarantee that goods arrive at their destination on time and in good condition. Logistics encompasses order processing, shipping (such as fleet management), inventory control, warehouse management, and delivery of products.

A company’s financial position might be harmed by improper logistics. Weak logistics result in late delivery, inability to satisfy customer requirements, and, as a result, the firm suffers. The word “logistics” is becoming widely popular in the business sector, particularly among factories, to characterize how goods are handled and moved throughout the supply chain.

To minimize expenses and maximize productivity, an effective supply chain and fine logistical operations are required. To fulfill the need for faster, better efficient delivery of a greater selection of items, suppliers, producers, marketers, and retailers have had to upgrade their logistics procedures. All of the components require the aspect of information and control to operate as catalysts for numerous operating processes.

Differentiating Logistics and Supply Chain Management

The policy and operations which go with planning, procuring, manufacturing, and distributing items, and also handling returns, are covered in supply chain management. 

Logistics is concerned with getting the right items to the correct spot at the right time and figuring out how to get them there. As should be obvious at around this time, supply chain management and logistics overlap however they are distinct in terms of extent and concentration. The following are the main difference between logistics and supply chain: 

  • Supply chain management operations include logistics. Production and inventory planning, workforce planning, equipment and supplies management, producing and distributing products and services are all covered under Supply Chain Management.
  • Supply Chain Management focuses on refining processes to gain a competitive edge, whereas logistics focuses on satisfying consumer demands and preferences.
  • The goal of logistics is to deliver items to clients in a timely and cost-friendly manner.
  • The conversion of raw resources into final products that flow from the provider to the manufacturer to the warehouse to merchants and/or customers is regulated by supply chain management.
  • Logistics is a phrase that has been around for a great many years, originating in the military, although supply chain management is a newer one.
  • Logistics is managed by a single company, while Supply Chain Management is done by many companies.

Consumer requirements are fulfilled, and the purchase environment is enhanced with the help of supply chain management and logistics. Consumer requirement is represented in logistics. This information is used by SCM to determine what customers need and to manage manufacturing and inventory levels.

Logistics that are both dependable and cost-friendly serve as a stepping stone for efficient supply chain management. Delivering orders precisely and on schedule is the outcome of a well-developed supply chain that will entice prospective consumers and expand the profit margins over time.

Conclusion

Logistics is an old phrase that was formed during the military to describe the administration, warehousing, and movement of army personnel and supplies. Just after the expansion of the notion of Supply Chain Management, this phrase is now used in a variety of fields, including the military.

 It’s also been argued that Supply Chain Management is a supplement to Logistics Management and that SCM includes logistics. Both are inextricably linked. As a result, they complement rather than oppose one other. Logistics can communicate with the transportation, warehousing, and marketing teams with the use of Supply Chain Management.