If you are planning to, or already are in the process of sourcing products or materials overseas, then we at NHFS believe that you should be aware of the problems that you may face and what steps you can take to overcome them.
The most important factor is ensuring that you’re effectively managing global freight industry relationships, such as your suppliers, and maintaining this good working relationship. Of course, this is easier said than done. Keep reading the blog as we reveal the 4 rules of managing meaningful logistics partnerships.
It is vital that you both understand and respect the social practices of the suppliers that you are working with. Failure to do so will result in a lack of trust and an inability to build a successful business relationship. You should also look into cultural business practices such as the correct etiquette when greeting business partners.
Sending money overseas is much more complicated than making transactions within your own country so ensure that you choose the most effective payment method for your business. It is also advised to offer a grace period when waiting to receive funds as overseas transactions can take longer, as well as sending your own payments a few days early to avoid any confusion.
This can be the most challenging aspect of managing international relationships, but it is a highly important one. You need to make sure that you have the correct number of suppliers, not too many, however, as this can become problematic, but definitely not too little in case one of them lets you down at short notice. It is also advisable to create a committee of supply chain stakeholders who can oversee and identify any supply chain issues.
Crossing borders and travelling overseas can be a complicated process and the shipping procedures can be complex, so it is important that you know what documentation you need depending on where your freight is going to.