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Globalizing your company (I): keep shipments in mind

importar-exportar-tramites-aduanas-planificacion-plan-comercio-internacional-asesoramiento-consejos-asesor-international-trade-global-export-import-advice-customs-formalities-procedures-DESTACADOGlobalizing your company is as exciting as it is confusing and complex.

There are many emerging doubts about the process, ones that should be answered, whether about production, communication or, in our case, logistics and distribution.

At LA LUNA shipping® we have worked with relevant internationalization projects. For example, we collaborate in the initial distribution and later in the sales logistics of Riot Cinema Collective's "El Cosmonaut" and on the other with Studio Banana Things® distributing worldwide its successful and strange "Ostrich Pillow®"

If you want to know how they were able to logically manage their success, keep reading:

First steps towards globalization

In this blog entry, we won't speak about how to create or successfully fund your projects. We're going straight to the point on how to keep in mind logistics, distribution, exportation and transport of your final product.

First of all seek advice. Look for advice in all aspects of your project and do it before manufacturing your product. There are projects like movies that depend on many other factors. But if you are going to make tangible goods, it's really important to know all the requirements before you start.

You may feel lost, but don't worry; it's absolutely OK. You will need some advice on a management level, in laws, accounting and logistics. Keep in mind the following:

It is absolutely important that from the start of your globalization endeavor, you take into account the weight, volume, packaging and markets of your product.

  1. Weight and Volume: we have a post on this blog about the relation between price and weight/volume. When creating your product and its packaging think about this: a cheap but big product will be more expensive because of its transportation price.
  2. Packaging: Remember, there will be inner and outer packaging. The inner packaging is part of your product, while the outer is just there for transportation. When preparing a package keep in mind volume and weight issues, as some inner packaging can increase the total transportation cost.
  3. Target markets: you won't be limiting your product to a few countries. Each country has their own laws and regulations that your product must meet in order to be distributed and sold.

The story behind Ostrich Pillow's distribution

Ostrich Pillow® is a product that initially had a huge inner packaging compared to its weight: A little more than 800g (1kg with inner packaging) that because of its bulky packaging cost 3.5kgs worth. After a meeting with the design team, we made the inner packaging lighter and smaller so volume would now cost 2kgs worth instead of 3 and a half, which meant huge savings in transportation costs.

Also when exporting the Ostrich Pillow® to other countries, it had to overcome certain requirements. Thought it is just a pillow, its components and materials must meet states' regulations. At customs in the USA, they thought the pillow was made with ostrich feathers!

That is why even before globalizing your product or company, you must invest in counseling, as it will save you many unpleasant surprises that can delay or difficult your objectives and will guarantee you successful international distribution.

At LA LUNA shipping® we have experience managing and counseling companies interested in globalizing their products. We start with an early study of the product and the target markets requirements (distribution and customs) so your next step of reaching the customer is simpler.

If you need counseling or distribution/transportation services, contact us by e-mail or by phone.

 

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