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FAQ

Is logistics only of interest to manufacturing companies?

Logistics and Supply Chain Management are not only of interest to manufacturers. It can be applied in both manufacturing and service industries.

They can be used to generate cost savings and service improvements. To compete in today’s world, manufacturers are increasingly using service criteria.

What are the risks of shipping cargo?

  • Delays: The most common causes of delay are inefficient time management and port procedures. Other variables can also affect the shipment, such as force majeure circumstances, like hurricanes, for example, or, in some parts of the world, the risk of a pirate attack.
  • Loss of goods: While this represents a very low risk at present, it can occur in the event of problems such as the sinking or breakdown of a ship, as well as due to theft in ports of loading and destination in countries with high levels of corruption.
    Humidity or extreme temperatures: Environmental conditions must be perfectly controlled to prevent the cargo from becoming unusable due to humidity, heat or extreme cold. Therefore, all cargo must be transported in containers suitable for its particular characteristics and checked to ensure that they are properly closed. They must also be properly loaded, unloaded and stored.
  • Contamination: The interaction between different goods can ruin them. Therefore, products must be well packed and properly stored to avoid contamination.
    Natural disasters: Natural disasters have become increasingly frequent and severe in recent years; this represents the most unpredictable risk on the list.
    Computer threats: This is one of the new risks in international shipping since the famous NotPetya attack on Maersk. Therefore, companies and ports are currently working on logistics cybersecurity.

What type of maritime transport vessels are there?

We can find different types of ships for sea transport, depending on the cargo they carry:

  • General cargo ships: these are basic cargo ships; they can carry cargo, but they don’t have space for containers.
  • Container ships: ships specially designed to transport goods in containers. They monopolize most of the international transport of dry cargo and represent more than half of all maritime trade.
  • Bulk carriers (Break bulk): the most suitable vessels for transporting solid bulk cargoes.
    Oil / Gas Tankers: special tankers for the transport of crude oil and by-products differentiated by their superior technical characteristics; All of them guarantee watertightness and structural resistance. Gas tankers have a more sophisticated technology to store liquefied gas and are divided into LNG and LPG carriers, as each must be kept at a different pressure and temperature.
  • Refrigerated vessels: transport of food and perishable products that must generally be kept at very low temperatures.
  • Ro-Ro ships: have ramps and platforms to transport vehicles with wheels, from private cars to industrial vehicles and loaded trucks. There are also hybrid versions of these ships that combine vehicle and passenger transport (ferries) and others that transport vehicles carrying containers (Ro-Lo)

Can you help me import/export if it is only a small amount?

Whether it’s a small box or the operation of several containers we can help you. Our effort will always be to offer the best solution for our customers.

We know that there are times when you simply need help with customs clearance for a personal use order and probably the best transportation option is via parcel post. We can help you get a better rate for your package, as well as advise you with the requirements that will be necessary for the import / export of your products, as well as the taxes and duties to be paid.

How much does it cost me to bring a container from China to Mexico?

An ocean freight is calculated at the market price. The price varies according to the availability of sea transport in the area and whether or not the owners need to take their boats from one place to another. For example, bringing products from China is much cheaper than taking them there. This is because the maquiladoras are in great demand to take cargo from China to other countries, while it is more complicated to find cargo to transport back to China given the existing trade imbalance. Another variable with a strong influence is the price of oil at the time of the trip.

How much does it cost me to import a product into Mexico?

Each shipment and product is unique and will have its own requirements for entry into Mexico as well as the taxes and/or duties to be paid. In order to determine all these costs and requirements it is necessary to classify the product and therefore have the following information:

  • Origin
  • Destination
  • Product description, data sheet and photos of the product
  • Approximate value

Extra information can also be provided such as the final use of the product, whether the product will be exported from Mexico after importation, among other things, to determine the feasibility of applying any programs for exemption or delaying the payment of duties and taxes.

How long does it take a container from China to Mexico?

The time it takes a cargo ship to travel between China and Mexico depends a lot on the route and speed of the ship. Normally this trip takes between 60 and 72 days. To this must be added the time it will take to board the ship at origin, the time it will be unloaded at destination, the time for its release and its shipment to final destination along with the transit.

Are China's suppliers reliable?

When dealing with suppliers from China it is important to verify that they are a legitimate company and that their claims are credible. China being the largest manufacturing country in the world, definitely has top level suppliers, as well as shell companies, fraudulent companies or just bad suppliers.

 There are several mechanisms, as well as Supplink’s business alliances in China to perform a thorough verification of suppliers. Determining if the company exists, making visits to the plant, reviewing the quality of the product, making reports during the production process and reviewing advances, as well as making an “audit” of the product before shipping (previous in origin), this way we can be sure that what is sent fulfills the standards and with the requested quality.

How difficult is it to export my product?

The most complicated part of thinking about exporting a product is having the negotiation ready with a buyer outside of Mexico. Once you have that, Supplink helps you make it as easy as possible. Some of the requirements will depend on the destination country and the product to be exported, such as certifications, product labels, certificates of origin, etc. The rest are simply requirements in Mexico, such as some sectorial export standards.

 Whatever your destination or product in Supplink we can help you.

What incoterm is suitable for me to negotiate with my client/supplier?

It is important to choose an Incoterm before negotiating with the parties involved in your shipment. Some things you may want to define include:

  • Will they pay for the entire shipment?
  • Will they cover only the first part of the shipment, which may be taking the goods to the freight forwarder’s warehouse, airport or port in the country of origin?
  • Do you want to pay the full cost of shipping because you can get better service and rates?

Remember, Incoterms define where your supplier’s shipping responsibility begins, where it ends, and when yours begins. You must be clear in terms of cost and risk where you want to take responsibility for the shipment based on variables such as

  • The trust you have in the supplier.
  • The country of origin and/or destination and its regulations, levels of insecurity, ability to contact agencies on the other side.
  • We leave you a table to review costs and risks according to the incoterm selected.

 

Logistics and supply chain are the same thing?

Logistics is the process of planning, implementing and controlling procedures for efficient and effective transportation and storage of goods, including services, and related information from the point of origin to the point of consumption in order to meet customer requirements. The right product in the right place in the right quantity at the right time, under the best conditions and at the lowest possible cost.

A supply chain is the network of organizations involved, through downlinks, in the different processes and activities that produce value in the form of products and services in the hands of the final consumer. Its management implies coordination, strategy and perfect execution along all the logistic processes of the involved organizations in order to act as a single organization, reduce costs and increase the value of the products and services.

Is it expensive to insure the goods I move?

There are several insurance companies and logistics companies like Supplink that offer a wide variety of cargo insurance depending on some factors such as the type of merchandise, if it is hazardous material or not, if you want to hire an annual policy based on a sales projection, etc. Also additional to these factors the insurance companies request some extra requirements, like for example if the value of the merchandise exceeds certain amount will request that the product goes guarded, that the unit takes GPS, that only transits by highways of payment, etc.

An insurance policy normally on the market can average over 1% of the value of the merchandise, covering from the point of origin to the point of destination and can vary according to different variables.

How long does a Logistics Consultancy last?

There are several types of consultancy and a number of different objectives. As in any project, in consulting it is important to define scopes, objectives and estimated times. At least from our experience, for a consulting project to have an impact, a time between 3 and 6 months is considered, where the ideal would be 12 months.

What are the benefits of hiring a supply chain consulting company?

Hiring an outside firm for a consulting project gives you access to a specialized skill set that may not exist within the company. Because of this our clients can have that skill set when they need it.

Another benefit is the look from an external point of view, without flawed processes or a fresh and different perspective. Consulting firms in turn work with many other firms and this gives them a picture of best practices either in the same type of firm or in different but applicable firms.

I want to open a warehouse, but I don't know what size or where.

 There are many variables to consider about the point, capacity and resources needed. The ideal is to carry out a Distribution Network project where we will be able to know, based on the density of your customers, distances, incoming and outgoing volumes, inventory levels and rotation, the optimal warehouse for your operation and the most flexible possible for your future scenarios. Remember that opening a winery is a strategic decision and you must consider the company’s past, the current situation and future scenarios.

Should I move goods by rail?

 Like everything else in logistics, we must consider different variables in order to make a decision of this type. There are definitely routes in Mexico and in the world where the railroad becomes a viable solution, especially if the volume to be moved is a lot. Another benefit on certain routes is that the cost is up to 20% – 35% less than a truck fare, however, the transit time increases considerably, approximately twice as much. Contact us and we can check if the rail service is what you need.

What is air freight?

 The price of air freight. Although it is calculated on the basis of the volume of the goods, the cost of transport is strongly influenced by variables such as the availability of physical means (of transport) on the desired route or the price of fuel at the time in question.

What is multimodal freight transport?

 Multimodal transport consists of transporting a single load by different modes of transport (air, land, sea …) using Intermodal Transport Units (ITU) as containers, semi-trailers or swap bodies.

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Guadalajara, Jalisco, México

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