Get ready to Export

Business Insights
20/04/2017

The Logistics Sector is ready for the Export Challenge, are you?

The product’s a hit, the finished items are flying off the shelves (or conveyor belt) in response to the orders that are flooding in. Customers from around the world are clamouring for it. All you’ve got to do is get it to them.

Aye, and there's the rub. Welcome to the world of logistics. And if you haven’t grasped all that it involves, the excellence and popularity of your offering matters not a whit. Happy customers will soon turn disgruntled and go elsewhere if you can’t reach your market swiftly, efficiently and reliably.

That applies whether the order comes from the other side of town or the other side of the globe, of course, but for businesses who need exports to help them succeed, prosper and grow, the excellence requirement could not be more fundamental

The challenges are many in ensuring a smooth and cost-efficient stream of goods all over the world and require consideration at board level. Equally critical is the need for supply and logistics people to ensure they are working with only the very best technology, people and processes to deliver first class results.

For any organisation looking to move into the world market place, choosing the method of crossing continents comes down to four options, although for many the actual journey requires a mix of types: road, rail, air and sea.

Businesses then need to decide which one works best for their requirements, and whether they are best placed to handle these logistics in-house or outsource to a freight operator.

That decision could depend on its own particular requirements, the type of goods on the move and the destination country.

For example, is speed a priority? While air freight is considerably more expensive than sea, the time advantage is obvious. This is more likely to be the choice of those transporting perishable items such as fresh fruit or flowers.

Rail might be perfect for connecting throughout Europe - but not so great if your customer is in a far flung, remote part of the world.

Are you moving valuable goods? Do they need to be kept refrigerated en route? Live animals? Dangerous materials? A whole host of rules and regulations surround all of these, often specific to an individual country.

Legal niceties alone could affect your transport choice, not to mention the consideration of whether you have the logistical expertise in-house to handle such critical issues. A recruited expert freight forwarder may look especially appealing at this point.

There’s no doubt that for UK companies the exports/logistics aspect of their operation has taken on a whole new level of significance with Brexit and the recent triggering of Article 50.

The future is now a topic for hot debate, with some of the sector’s leading associations engaging in dialogue with government as it seeks to negotiate withdrawal from the EU.

Encouragingly, a recent survey from The Institute of Export and International Trade showed that nearly all those asked were optimistic about growing their business through global trade. The Institute is also busy organising Post Brexit workshops and has a host of experts on hand to help with any specific issues encountered www.export.org.uk

Meanwhile the British Exporters Association has announced its involvement in Business Strategy for Brexit, a major new initiative addressing the emerging new global landscape of trade between the UK and the rest of the world.

The Chartered Institute of Logistics and Transport (CILT) acknowledges that its sector remains uncertain but adds that it should also embrace the positive and acknowledge the potential for many future opportunities.

Chief Executive Kevin Richardson, says: “As a profession, we need to be ready and able to seize these and add value.

“The work of the professionals involved in the movement of goods and people – and their associated supply chains – impacts directly on every element of society and the environment, therefore the Institute will continue to play a role in informing policy and our Government’s choices so that British companies can operate successfully and competitively.

“We will continue to support Government to ensure that the UK is easy to do business with. CILT recommends setting a goal of ‘frictionless’ border control, whilst encouraging and supporting the private sector to evaluate and think about new trading patterns and supply chains and establishing rights for EU citizens to protect the 400,000 plus people engaged in retail and logistics.”