How Businesses Can Improve International Supply Chain Management

International supply chains take place over various stages and locations. From receipt at a port through storage and distribution, it is all very complex logistics processes. Working with a third party logistics company for such logistics activities as warehousing, inventory, transportation, fulfillment and distribution can enable businesses to implement a seamless supply chain strategy for logistics activities such as warehousing, inventory control, transportation, fulfillment, and distribution through a synchronized approach.

International Supply Chains Defined

International supply chains can include suppliers, manufacturers, ocean freight, ports, handling, warehouses, distribution, customers, etc.

A typical order could include:

Supplier > Ocean > Port > Handling > Warehouse > Distribution > Customer.

Each activity presents differing aspects with which to consider operations.

A problem at the port can affect warehouse inventory, an issue with the warehouse can impact order fulfillment, and a transportation issue can cause customer delays. This is why businesses should be able to overview the complete logistics chain as opposed to individual aspects.

Reasons Why Supply Chain Planning Helps

International logistics requires planning. Companies must be mindful of elements such as:

• Supplier locations

• Transportation

• Port access

• Warehousing

• Inventory

• Customs

• Deliveries

• Customers

These planning efforts can help firms determine which problems can arise.

In addition, companies will be able to determine where inventory locations should be along the logistics chain and how distribution activities must take place.

Warehousing

Warehousing enables businesses to link international and domestic transportation.

After importing, there can be a number of activities in a warehouse. Whether receiving, counting, labeling, storage, picking, packing, or preparing for transportation – the warehouse needs to be able to provide accurate inventory information for the company to have proper insight on the products in inventory and their locations.

Key roles for a warehouse can also include receiving materials, maintaining inventory control, storage, order picking, packaging, palletization, shipment preparation, and returns.

Efficient warehousing can help businesses ensure smooth logistics flows.

Inventory Visibility

International supply chains can consist of high volumes of inventory. Without proper information on inventory availability, it can cause business issues, such as excess stock, deficits, wrong orders or shipments, delayed deliveries, increased storage expenses, and poor purchases.

Technology can assist with maintaining appropriate levels of knowledge of inventory flows. Barcode systems, warehouse management systems, order management systems, and electronic reporting can provide businesses with information on the inventory available.

Transportation

The topic of transportation is another aspect that requires proper logistics planning for international supply chains.

Businesses considering international trade need to keep in mind a number of transportation chain elements. Products can be subject to different transportation components on the way to final destination.

In some cases, inventory can be subject to the following transportation methods:

Ocean > Drayage > Truck > Rail > Airfreight > Regional Networks

Proper synchronization of these steps can minimize unnecessary handling and delays.

Companies need to assess transportation costs along with their delivery needs.

Low transportation rates are appealing but sometimes the cost is not all that matters. Other facets such as reliability, time, volume, availability, and specific service requirements and characteristics are also contributing factors.

Foreign Trade Zone Operations

There are different inventory methods that businesses can consider when operating in foreign markets.

An FTZ operation offers organizations the opportunity manage specific merchandise under the applicable U.S. Customs rules. An FTZ operation can include the receiving of specific products, inventory control, processing applicable products, and other related activities.

Companies considering an FTZ need to learn more about the regulations that pertain to such operations.

Why It’s About a Location

The location of a warehouse can make a big difference regarding efficiency in international supply chains.

Having a central location can offer easier access to:

• Ports

• Highways

• Truck transportation

• Distribution

• Customers

• Hot markets

Businesses importing their inventory and utilizing a logistics partner based in Southern California can benefit greatly from such proximity to transportation networks.

Scalability

International supply chains can be complex. When companies grow, the distribution aspect can be more challenging. As volume increases, there might be a need for:

• More space

• Extra transportation

• Additional inventory facilities

• More labor

• Advanced order management solutions

• Increased distribution capacity

Businesses considering growth with regard to product volumes and international markets need to make sure that the logistics components – such as warehousing, distribution, and FTZ, where applicable – can accommodate this. A logistics partner that has scalable solutions can provide organizations with the opportunities to grow by having flexible space and services that fit their increasing international shipping volumes.

Warehousing Distribution

Warehousing and distribution activities need to work in tandem for streamlined processes.

After all, what is in a warehouse, will need to go somewhere else – retail stores, warehouses, wholesale, or consumers – and companies need to synchronize the logistics to avoid extra movements and streamline order processing.

Common Questions

What Is International Supply Chain?

It is a series of steps involved in moving products between suppliers, ports, warehouses, distribution, customers, etc. in international and domestic locations.

Why Is Warehousing Key to International Imports?

Warehousing facilitates the opportunity to place the imported products in a location where they can move on to the next step of the logistics process.

How Does Inventory Visibility Help International Supply Chains?

This assists businesses to understand inventory in relation to their own activities and plan accordingly. It can prevent fulfillment errors and unnecessary delays in order processing.

What Is an FTZ?

An FTZ is a zone where merchandise qualifies for treatment in accordance with specific U.S. customs regulations.

Why Does a Warehouse’s Position Matter for International Logistics?

The location can dictate distances, delivery times, and access to markets.

Companies handling imports can consider a FTZ warehouse California operation when considering how to address eligible merchandise as part of their international supply chain management.

Final Thoughts

International supply chains require the combination of transportation, warehousing, inventory, distribution and specific import expertise. Businesses need to understand the interplay between these aspects to implement appropriate supply chains strategies to gain visibility and be able to meet various activities and requirements.

The approach will differ depending on companies’ products, volumes, destinations, inventory needs, and international activities. It is vital for businesses to ensure that they plan their logistics processes appropriately to help ensure scalable and efficient international supply chains.

Contact Bee Imagine for advice on international logistics, warehousing, FTZ operations, fulfillment, and distribution activities for your business.