On 28th February Kateryna Boboshko, the Expert in International Logistics of ZAMMLER GROUP spoke at one of the major business events in Ukraine – Get Business Festival. During her speech, Kateryna defined the basic essentials that shall be taken into account by the entrepreneurs while entering the international markets.
While entering the international market the exporters may face various underlying potential problems in the process of activities arrangement. During her speech at Get Business Festival Kateryna Boboshko, the Expert in International Logistics of group of companies ZAMMLER told about the basic essentials to be regarded in order not to fail at the very beginning of business activities.
“While entering the international market the exporter shall understand that it is a challenging task, first of all it is a strategy. Export shall not be treated as a simple purchasing and shipping of goods. It is important to analyze every stage of logistics chain and try to thing over the whole scheme”- she explained.
Marketing analysis of the market and demand is the first mandatory step. Upon determining of the target market for the goods it is necessary to examine the customer profiling. Any mistakes made during the specified stages may threaten a failure at the very beginning.
The next stage is signing of Purchase and Sale Agreement with regard to INCOTERMS (revised version 2020) regulating the activities of the Buyer and the Seller. It is important to share the responsibility and risks undertaken by each party in a correct manner. The optimum condition for the Exporter is EXW (Ex Works) while all the expenses for delivery, customs clearance as well as all the risks are taken by the receiver. A crucial aspect to be considered while signing of the agreement is meant to be the type of transport used and conditions of the goods carriage” – told Boboshko.
Selection of the type of transport depends on the goods value, specifications, volume of products ordered, direction, and the company technical abilities. Therewith determination of the Parties liability in the Agreement is of fundamental importance.
“There are three types of cargo liability: carrier liability, logistics provider liability and additional insurance. All the logistics providers are obliged to insure their liability and it is strictly limited. You shall check whether the liability covers the losses related to the loss/damage of Your cargo. If no, You shall provide additional insurance”, – stated Kateryna Boboshko.
When the selected carrier/logistics provider signs (specifies) full financial liability for the cargo in the Agreement for international carriage of goods, You shall consider whether it will discharge its obligations if so required! Select the reliable partner who is responsible for its words and actions.
It is necessary to select the best type of transport for carriage of the products thought each has own advantages and disadvantages. Among the advantages of the road transport we may denote: inexpensive service, suitability for a large product group, placing cargo on the pallets, boxes, bigbags, cargo bailing, filling in barrels. At the same time transportation of cargo by road suffers from a number of disadvantages: higher carrier cost, immediate unloading, price dependence on the seasonal fluctuation, availability of permits for transit through the territory of the other countries. Among the sea transport advantages, we may outline relatively inexpensive service, suitability for various product groups and bulk consignments. However, the main disadvantages include long delivery time, dependence on weather conditions and seasonal fluctuation.
If the logistics operator is selected properly, it exercises all the duties to arrange the transportation in the best way possible and give recommendations concerning reasonableness of use of a specific type of transport.
“After You have made a decision regarding the customer, signed the agreement, selected the logistics provider and the logistics scheme, You shall carry out trail delivery” – states the Expert in International Logistics of group of companies ZAMMLER. It shall be a small consignment allowing You to check whether You have selected the logistics chain in a proper way and correct mistakes. Kateryna indicated that the exporter shall never save on logistics. In any case the economy shall be reasonable. Particularly if You plan long-term effective cooperation with the Customer and covered a long way to reach You goal!
“In our business the economy shall be justified, all the operations shall run like a well-oiled machine. If one of the wheels damps squib because You decided to save money, Your business may fail at the initial stage” – emphasized Boboshko.