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Extended Supply Chain
SUPPLIERS MANUFACTURER
DISTRIBUTION CENTRE
LOGISTICS FACILITATOR
WHOLESALER
RETAIL OUTLET
CONSUMER
Online Retailers Supply Chain
ONLINE ORDER ONLINE RETAILER MANUFACTURER
DISTRIBUTOR
LOGISTICS FACILITATOR
HOME DELIVERY CONSUMER
Incoterms
• Definition - Incoterms are the international rules for the interpretation of trade terms used in international trade, formulated by the International Chamber of Commerce.
• Incoterms determine:
– Which party bears costs
– Which party bears risk
– Which party bears insurance
How to Research and Develop Alternate Logistic Models
• Establish what your own model looks like, and ask why it’s being done this way?
• Research your competitor’s models, and find out why they are doing it that way.
• Talk to the market – Integrators
– Freight Forwarders
– Customs brokers
– Couriers / Postal Operators
– Aggregators
– 3PL’s
Ask them about: Operating Functions, Capabilities, Infrastructure, Strengths, Rates and Trading Terms
Differences
International • Originate from larger
domestic markets
• Access to cheaper labour
• Have established foreign markets
• Can capitalise on our high duty/tax threshold
• Easy access to B2C solutions
Domestic • Local Market Expertise
• Good Australian branding
• Can handle free shipping & returns more effectively
• Can create more value added options
International Markets & Foreign Regulations
• Evaluate demand requirements for your products internationally. In some markets your product will not sell at a commercially viable price.
• Obtain information from government agencies,
(Australian Trade Commission / Export Council of Australia and foreign Chambers of Commerce).
• Prepare a simple logistics model, and look to expand your opportunities into a diverse range of markets.
• Prepare your website with the updated terms and conditions required for international trade.
• Start slow and analyse any new business.
• Use your knowledge of Incoterms and alternative Logistic Models to create more effective solutions once your volumes increase to a level of critical mass.
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