When dealing with international commerce, what are the important logistical factors that must be taken into consideration?

Actually there are many factors has to be considered for example:

1. ·         Mode of transport
2. ·         Shipping, transportation lead time.
3. ·         Shipping Rates.
4. ·         Customs procedures in the exporting port.
5. ·         Customs regulations in the importing port.
6. ·         All regulations needed for the imported shipment type (i.e. health, security, environmental, electrical, industrial certificates....etc.)

1- Lead time

2- Customs and Quarantine Rules and Regulations

3- IATA Regulations

4- Legal policies and Procedures

5- Mode of transport and allotted time on particular mode.

6- Language convenience

7- Insurance and Quality of product and its packaging  

Dealing with international commerce would get myself visited to the supplier to asses his capabilities in trading overseas. Identify his customers presently to build up trust in him. Negotiate with him on the rates part. Identify the trade policies between countries. understand the customs procedure to import and export .Look out for Logistics movement overseas and from his end to your doorstep. Most importantly lead time have to be taken into account.

1. The countries who are going to be part of this trade and their respective Trade Policies.

2. Specifically, the Export-Import Rules applicable.

3. The time that is taken for the Logistics (Lead Time or Delivery time)

4. Insurance coverage

5. Packing Specifications

so many thing in logistic  factor specially in the way of customs procedure from preparation of customs entry  and import from document to attached and other additional charges l and also  mode of payment  and also  or other document clearance ..

Logistics in International Commerce is the most Risk Prone Area because of very low degree of control over many factors affecting the quality of logistics. These amongst other include:

Mode of Transportation withing Suppliers Country

Mode of Transportation between countries

Difficulties in managing a transport contract

Risks in international Transport

Quality of Packaging

Insurance Responsibilities

Customs and clearance at the port of destination

The important logistic factors when dealing to international commerce as listed below.

1. Delivery base on the expected date/time & place (not delay)

2. Negotiating on Legal or right procedures.

3.  Agreement on the travel expense of products.

4. Warranty surplus property

1. internal legal procedures.

2. lead time

3. shopping prices /sea ,air , land freight.

4.customs process.

5.insurance of the product.

based on the trade policies between the countries, specifications as well as negotiations (price & terms)  and price factor would taken into account

In international dealing,we as Procurement have to pay attention to two commercial terms in order to reduce our risk and liability:

1. Delivery Terms

2. Payment Terms especially for L/Cs

In addition to the factors mentioned by our colleagues above, we must also, be very careful with documentation requirement for custom clearance of the shipment. 

Purchase terms including the Delivery terms in order to prepare the subsequents activities.