International logistics: Keys to the development of a successful logistics process!

February 18, 2023 by
Frank Calviño

By Brian York - With the impending growth of globalization, not only has the world had to update, but so have businesses and retailers. These changes have changed not only compromised the way we sell but also how we deliver those purchases.

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As AMVO points out, due to the effect of the COVID-19 pandemic, 86% of consumers now prefer to have their online purchases delivered directly to their homes, compared to 5% who prefer to pick up their products in a physical store. 

This gives us a broader picture of how business has been changing and how this, in turn, enables the emergence of international logistics. This provides the ability to transport raw materials or finished products from one country of origin to another, where those resources will be used in various ways, such as manufacturing products or marketing them directly.

Although shipping sounds like a simple task, it is crucial to know that behind the click of a button requesting a delivery; there is a whole scheme that considers the needs of the supplier, the business, and the end customer. Also, let's keep in mind that in 2021 the international logistics market will reach 441 billion euros due to the boom in e-commerce and international trade.

Therefore, efficient logistics planning is a must to achieve the desired excellence. Join me to discover what logistics processes are, the keys to developing a successful logistics process, and what tips you can follow to internationalize your business. 

What is a logistics process?

In today's world, properly following any process allows coordinating actions to reach a previously established result faster. In logistics, processes are those activities that facilitate the correct manufacturing of products, coordination of transportation, and distribution of goods.

If such processes were successfully created, we would be able to enjoy advantages such as the following:

  • Improve quality control.
  • Reduce delivery times of packages and/or services.
  • To have a higher efficiency rate.
  • Achieve customer satisfaction.
  • Increase the competitiveness of your business in front of others.
  • Minimize business overhead.
  • Pollute less.
  • Increase customers and revenues.
  • Improve risk management.
  • Learn from mistakes made.
  • Mitigate potential and future risks.
  • Maintain demand for our products.

Here, it is essential to emphasize that a helpful logistics process depends on the product's location and essential factors such as production and personnel costs, time, and storage possibilities.

What are the five steps of any logistics process?

In the same way, this logistic process is subdivided into five different operations that allow the quality of logistics to be measured. These are:

1. Purchasing

This first step refers to where the materials, supplies, and raw materials required to manufacture the product to be marketed are determined. Or, if needed, to purchase the products or services to be sold or offered in the business.

The following essential functions are performed within this stage:

  • Choosing who will be the suppliers.
  • Plan purchases.
  • Ordering according to business needs.
  • Manage inventory.

2. Customer Service

Maintaining good customer service translates into organic advertising and lower inventory costs. Since this is one of the crucial processes within logistics, it is paramount to take care of fast and smooth contact, timely delivery of goods, and how complaints and compliments are handled.

3. Inventory management

This process enables the control and management of product inventories to be maintained. In this process, methods are applied to evaluate the input and output of these goods. In the same way, activities such as stock custody, inventory analysis, and planning the production of new goods or products are carried out here.

4. Storage

Storage is the function that is responsible for "taking care" of all the merchandise, i.e., guarding the existing inventory. It is also essential to define the storage model and the warehouse management system to be followed.

5. Transportation

Another vital aspect of logistics is transportation. This must move the goods or products from one point to another and, depending on the location of the destination or the point of origin, is when the appropriate freight or transportation service will be selected for the order.

Keys to developing a successful logistics process

However, developing a successful logistics process is not difficult and does not have to cause you headaches. Here are the keys to developing a successful logistics process to help your business go international.

Investing in technology and process automation

There are processes that, even if you want to perform personally, it is better to delegate the task to technology. For example, if you have rushed delivery times or are handling exorbitant amounts of information. Thus, you must know the advantages of technology, as well as the importance of implementing it.

Measure performance and monitor improvements

Developing and implementing metrics to measure performance provides information that, over time, will allow you to create possible improvement plans. At the same time, it is also necessary to integrate measurement tools and software to help you save time and keep track of all the information obtained.

Maintaining a good communication flow

Another key to achieving a good logistics process is to communicate appropriately, both the company with suppliers and the company with customers. This will allow you to solve problems in advance, report process delays, or simply communicate critical information. Remember that there are multiple communication channels, so choosing the right one depends entirely on the information to be communicated.

Tips for internationalizing your business

Today, it is not news that many businesses are turning to selling to and reaching international customers. This is why logistics, as a concept, is so essential. With its help, we can all send and receive products, documents, and even postcards or photographs from anywhere in the world.

Therefore, for you to achieve the internationalization of your business, it is necessary that you not only follow the keys to developing a successful logistics process but that you also stay interested in what happens in the production and movement of goods. 

Now that you've learned all about the logistics process and the advantages it brings, what are you waiting for to internationalize your business? Here are some tips you should follow to take full advantage of logistics and reach every corner of the world.

Study and anticipate changes

The world continues to change, so anticipating and evolving is an excellent advantage over the competition. By having a more detailed view of how the world works and what changes have occurred, you can anticipate future behaviors that may affect your business.

Be better than your competition

Although this advice may sound very obvious, you must never forget it. Remember that when selling abroad, you will be up against local businesses with years of experience in the sector. 

That is why you should be aware of what others are doing, the marketing strategies that work for them, and even examine the consumption of the inhabitants of the destination country. This way, you can ensure that you maintain your place in international trade while taking advantage of unique opportunities to stand out.

Evaluate your product

When talking about internationalizing a business, you have to consider the product you will be handling and, consequently, shipping. Before doing anything else, you must carry out a study of your product.

That is to say, evaluate the opportunities you will have abroad. To do this, you can ask yourself the following questions: What will I sell? Will it be successful? In which countries? Is it allowed to be shipped? Keep in mind that your product should be not only popular in your country of origin but also in the country of destination.

Use a warehouse management system

When internationalizing your business, you must have a warehouse management system; this system was created to support and optimize the warehousing and distribution operations of companies and SMEs. 

The best part is that Cubbo can help you synchronize your orders on the same platform and store your products in our fulfillment centers. 

Rest assured that we will customize and ship your orders in record time just the way you want them, allowing you total control of your business. 

Distinguished customers such as PlatanoMelon, and Dossier, among others, trusted Cubbo to open essential markets such as Mexico, Brazil, and Colombia to convert their normal logistic process into a spectacular one.

Walking with open arms into the future and the unpredictable is scary, and adapting to technology is challenging. Still, both must stand out in today's competitive market. So, analyze and improve your processes, guarantee customer satisfaction, and you will see how your business becomes the business of your dreams.

About the author: Brian York is a successful entrepreneur that co-founded the e-logistics solution provider Cubbo and is an expert on logistics solutions and international e-commerce fulfillment. 

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