5 Tips for Painless Logistics
If you live in the world of FF&E, there’s
a good chance you have journeyed to
the far distances of the industry. That
place with terms soaring around such
as bill of landing, certificate of origin,
terminal handling, INCO term, duties,
or harmonized codes. I’m talking about
the vast world of global purchasing and
logistics. For many who are unfamiliar
with the freight forwarding world, this
new territory can be easy to get lost in
and feel the agony of confusion. Have
no fear! Axis Worldwide Hospitality
Logistics has put together five key points
to remember when purchasing and
transporting product for your hospitality
project freight that will save valuable
time and reduce costs, and ultimately
strengthen and add value to your supply
chain.
1. Know the Product
Your purchase orders contain a
plethora of goods from case goods
in China, rugs in India, to lighting
in Italy but regardless of origin, it
is always important to know the
international commodity code as
this is what your duties and VAT are
based on and these codes will advise
if specific licenses are needed. As a
rule of thumb, sellers should inform
the buyer of the below at or before
time of sale:
• Harmonized Code
• Any licenses needed to export/
import the product
• What documents are needed
to transport the goods
internationally?
2. What is the INCO Term?
Finding an INCO term you are
comfortable with for your business,
is like finding a good doctor. Once
you do, you never want to stray for
fear that any other option will be
inadequate. The problem, however, is
not every supplier or consumer agree
on the same term for every sale and
doing your due diligence to analyze
the cost differences between certain
terms will strengthen the profitability
of your next project. Here are some
things to ask when analyzing:
• Who is responsible for customs
fees and what are they estimated
to be?
• Who is the importer and
exporter of record?
• Are my transportation costs
lower than the seller’s?
(comparison of INCO terms
shipping your own goods versus
having the seller include shipping in
the costs)
3. Choose the Right Partners
There’s no “I” in team, right? When
it comes to logistics and moving your
product, solidifying partners that
understand your product and have
the experience to tackle the hurdles
of global procurement is key. Here
are just a few examples of partners
that make the world (or in this case,
product) go round:
1. Freight Forwarder
2. Customs Broker
3. Warehouse
your goods
• Tighter control of where,
when and how your goods are
transported
5. Consolidation Creation
Goods from Hong Kong and
Guangzhou walk into a bar...and
realize they would save money
shipping to the U.S. together! When
possible, creating consolidated air
and ocean shipments can save costs
and add value to the supply chain.
When several small shipments are
consolidated into one it can provide a
reduction in:
• Terminal handling fees
• Origin and destination trucking
costs
• Liability of damage or loss
• Overall transportation cost per
unit
As Mark Twain once said, “The secret of
getting ahead is getting started”, so get
started with Axis Hospitality Logistics on
your next project!
4. Installation Team
*Tip: Try consolidating partners by
choosing a freight forwarder that can
handle all of the services for your
shipment or project. In many cases,
you will find this will not only lower
cost, but also streamline operations.
4. Technology Matters
Let’s face it. When the battery life of
your mobile device or laptop is in the
red and you are without the power
cord, a feeling of despair quickly
comes over you. We live in a world
that lives and breathes technology.
Fortunately, for global shipping,
having a solid software system can
mean that you can control the
next phase of your supply chain a
bit better. Some of the benefits
of choosing partners who invest in
technology can mean:
• Expedited reporting
• Current status and tracki