The Internet has opened the doors of endless opportunities for entrepreneurs working in any market and business niche. If we particularly talk about the garment/fashion industry, then it has experienced exponential growth in the retail sector due to the Internet and connectivity. It won’t be wrong to say that there now exists a consolidated global garment marketplace where people can shop from all over the world.

There are still some areas and kinks that need to be addressed. For instance, garment manufacturers and aspirant shippers are not able to execute their plans for going international because they are not operationally strong enough and prepared to take on the herculean task of importing goods.

In many cases, garment manufacturers resolve and scale up their business to international markets while managing garment/fashion shipping logistics themselves. But soon, they realize that there is so much loss of opportunity in dealing with apparel shipping from the in-house resources that it is not worth it. What’s the point of scaling up your business to international markets if your revenue continues to lurk around the break-even point?

If you are also one of those garment vendors who can’t settle on whether going overseas is a lucrative prospect or not, then read on. We are going to discuss a way in which you can make your overseas venture worthwhile and fulfill the targets of your business expansion. You can do this by outsourcing your fashion shipping to professionals.

Let’s see how you can benefit from outsourcing your shipping operations rather than dealing with them on your own.

You Don’t Have to Create Your Supply-Chain

For all those small and medium-sized enterprises that want to ship their garments to premium markets like the US, EU, and Australia, the task of creating an overseas supply chain proves to be enough to deter them. Creating an international supply chain is no mean task. Even large multinationals and conglomerates face problems in erecting a thriving global supply chain.

In this context, outsourcing your apparel shipping to professionals seems the right option. By hiring a seasoned global garment/fashion shipping logistics service, you can use their intricate network of supply chains spanning every nook and corner of the world. You get to use their wide distribution system which takes years and decades to acquire its current status. Moreover, their storage facilities and comprehensive freight service make sure you don’t have to worry about your garment/fashion shipping logistics at any point in the supply chain.

You Can Optimally Customize Your Garment/Fashion shipping logistics

We often see that a motivated garment manufacturer begins global shipping of its goods on its own but with very limited options and almost no flexibility. Again, having an elementary shipping service won’t help you in realizing your ambitious dream of capturing the international market. However, this scenario does not take place when a professional is handling your garment/fashion shipping logistics. There you get a lot of room to customize your global apparel shipping as per your manufacturing arrangement and clients’ needs.

Let’s try to understand the importance of garment/fashion shipping logistics customization with the help of an example.

Example 1:

An Egyptian apparel company catering to local retailers decides to scale its business to international markets. It tries to set up its importing mechanism and signs a deal with an ocean carrier to ship its apparel goods to the US. The carrier is supposed to procure the consignment from Alexandria to Houston.

Soon after brokering this deal, the company receives an urgent order to deliver 1,000 jackets from a Texas-based wholesaler within five weeks. The manufacturing capacity of the company allows it to complete the order within two weeks. So, the company has three weeks to deliver the consignment to the buyer in the US. By using its shipping service, there is no way it can deliver the order within time.

The average sea transit time from the Port of Alexandria to the Port of Houston is 32 days. Moreover, the company has to wait two days more for the shipping vessel to leave at its prescribed schedule.

Example 2:

Similarly, the same company gets an order of Hawaii shirts from an LA-based wholesaler. The company gets enough time to deliver the shipment via ocean freight. However, the problem is the carrier will unload the consignment at the Houston port, and from there, the Egyptian company has to transport the consignment to the buyer, who is located over 1,500 miles from the port of destination.

Professional Outsourcing Garment/Fashion shipping logistics to the Rescue

In both the above scenarios, the Egyptian garment company can’t benefit from its contract with the carrier company that involves limited shipping options. It has to bear the brunt of added shipping costs, or worse, call off the order altogether. Here, the diverse shipping options that a global garment and IOR company offers will come in handy.

For the first scenario, the Egyptian manufacturer can use the air shipment services of its partner garment/fashion shipping Logistics Company to deliver the order within time. In the second case, the company doesn’t have to procure its consignment to the Houston port. It can directly book ocean freight to Los Angeles with the garment/fashion shipping logistics service.

Having the option to choose between different means of shipping and ports of destination is one of the most important prospects of outsourcing your apparel shipping to professionals. It will make sure you can cater to all clients while meeting their deadlines and can procure their orders to the closest sea and airports.

You Can Simultaneously Scale Your Business to Multiple International Markets For Garment/Fashion

When garment companies want to scale their businesses to international markets while using their resources, they adopt the strategy of “one at a time.” It is surely a sound scaling-up plan with minimal risks involved. However, its pacing is quite an issue. In many instances, businesses can’t scale up to more than two markets because when they can scale up to new markets, they have already been saturated.

Outsourcing of garment/fashion shipping logistics also allows you to venture into various international markets all at once and without exhausting your in-house expertise and resources. For instance, a Moroccan apparel company has the manufacturing capacity to cater to multiple markets with its cotton garments. It can’t make the most of this competence if it tries to run its import network.

On the other hand, by signing up with a global garment/fashion shipping logistics service, it can ship to all the prized markets of the world without altering anything in its existing business function.

A Corollary

This also shows that by outsourcing its garment/fashion shipping logistics, the Moroccan company can focus on its core competency, i.e., manufacturing of cotton apparel. While handing over all the hassle of overseas shipping to professionals, it can further increase its manufacturing capacity to supply to the large international market shortly.

Similarly, it can focus on improving the quality which is an essential requirement to venture into many international markets. Also, it can work on improving its compliance effectiveness. A manufacturer with high standards of compliance measures always has brighter prospects in the international market.

You Can Never Go Wrong with Garment Packing and Packaging

Every item that has to be shipped via air and ocean shipping needs unique packaging and packing. The same is the case with different apparel items. You can’t just book them in large cardboard boxes or gunny sacks for your overseas destinations. The expertise of a seasoned garment/fashion shipping logistics service will come in handy here. They know that not all garment items can be shipped in the same manner. Therefore, they offer relevant options to their shipping clientele.

For instance, if you are delivering a consignment of delicate knitwear from Bahrain to Singapore via ocean freight, then you need to properly fold and pack them in garment boxes because they will remain in transit for more than two weeks. Similarly, if your apparel shipping from Egypt to South Korea consists of silk gowns, then you can’t just fold and pack them in cartons. The consignment will take no less than 38 days to reach the destination via ocean shipping. By spending more than one month in folded and boxed packaging, there are strong chance the gowns will lose their original fall and creases.

After receiving such consignments, the buyer has to iron and steam the apparel which increases its workload and reduces the profit margin. This inconvenience becomes a reason for high attrition rates for many garment manufacturers selling their goods overseas.

You can get around this problem by using the GOH (Garment on Hanger) shipping services of the professional enterprise where you have outsourced your apparel imports. GOH shipping allows you to procure the apparel while they remain on their hangers.

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Today, 3PL providers offer more than cost savings; they are long-term partners in technology, process integration, and shared accountability. Both businesses and 3PLs must align objectives and coordinate planning, management, and execution to ensure mutual benefit.

Here are some key elements of successful 3PL collaborations.

Research Before Making a Selection

Many businesses make the mistake of rushing the decision to choose their 3PL provider without considering their objectives. This means the 3PL partner you select might not have the capacity or reach to ship to your target destinations, or they may have different expectations regarding contract pricing.

Make sure that your 3PL provides a stable unified platform with consistent processes across the enterprise. Many of these firms are the result of several acquisitions and mergers with a resultant variability in services. Evaluate the 3PL’s service level, technology, management, reputation, strategic direction, expected results, and corporate culture before making your choice.

An Integrated Logistics Relationship

Establish a clear, quantifiable relationship with your 3PL provider using a Service Level Agreement (SLA) and agreed KPIs. This helps track partnership effectiveness through metrics and codifies processes and objectives like customer service, IT, cost reductions, and logistics improvements.

This agreement must be reviewed periodically. If changes are necessary due to changes in the industry or your relationship, then these can be commonly agreed upon as well.

Regular Communication

Great partnerships are cemented through consistent and effective communication, as well as the sharing of vital information. This includes internal and external sharing between partners as well as the measurement of results and their communication. Good communication will help you resolve conflicts before they occur, and when they do, it will help you resolve the issues at hand and make decisions towards changing processes so that those scenarios don’t occur again.

Sharing Risks and Rewards

This is a business partnership, so your 3PL should function as an extension of your own business. It may be necessary to share joint premises with your 3PL to foster better communication and aid joint planning. Gain-sharing agreements are another way to show your business’s commitment to partnership by sharing risks and rewards in a 50-50 split.

Learn how GEC Logistics Services can help you.

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Transport Management Systems (TMS) are software that links a company’s Order Management System (OMS) with its Distribution Center (DC).

A TMS becomes a central hub of communication for the transport aspect of an organization’s supply chain. A TMS, therefore, facilitates a three-way interaction between the carrier, shipper, and ultimately, the customer. Conventional TMS systems offer modules for load optimization, yard management, carrier management, order visibility, advanced shipping, freight payment, audit, route planning, execution, and optimization.

To derive the maximum benefit from a TMS program, an organization should be able to meet the goals mentioned below:

• Cost efficiencies via optimized planning of routes, load optimization, and carrier selection
• Improved accountability via increased visibility of the transport chain
• Broader flexibility to accommodate alterations in delivery plans
• Completion of fundamental execution requirements of the supply chain

Challenges that shippers face in the present economic environment

In today’s business landscape, managing domestic and global transportation within a unified system is essential for an efficient and integrated supply chain. To this day, businesses rely on manual processes or use multiple systems to manage their freight. This leaves little to no room for evaluating performance or service quality. Other businesses use hosted legacy transportation management systems. Hosted transport management systems lack flexibility and don’t offer a comprehensive view of the supply chain. Without established metrics or best practices, businesses struggle to reduce transportation costs and improve service quality.

Effective international shipment planning requires shippers to manage sailing schedules, trade compliance, bookings, and tracking of imports and exports. We recommend reading Global Trade Management.

Using Transport Management Systems for managing global and domestic freight

One option that shippers need to consider is Transport Management Systems that are available as Software-as-a-Service (SaaS) and offer global and domestic functionality. Software designed for global logistics should ideally enable businesses to effectively manage all forms of transportation (domestic or global) under a single platform with a unified workflow. The entire supply chain should be fully visible and there should be direct communication between the carriers and shippers.

If shippers can deploy a global TMS, they will have an all-inclusive solution for managing domestic freight at a port-to-port level, which will have a direct impact on the company’s bottom line. Automated processes, streamlined communications, and a unified workflow among all supply chain partners enhance efficiency and provide greater visibility into payments and related discrepancies before they impact finances.

Technology designed for global transportation can significantly help in bridging the gap for companies with multiple divisions as they enable logistics management on a global and domestic scale within a single system.

Learn More about our IOR and Freight Services to improve your global transportation.

Explore further by reading Countervailing Duty

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The success of one of the most rapidly growing regions of America can be linked to the fact that it has been able to successfully market its strengths in supply chain, to major logistics companies. The area has an extremely reliable workforce, well-developed infrastructure, and is a prime location. Therefore, in recent years, some of the biggest distributors (Target, Tractor Supply Company, HomeGoods), have been drawn to the region.

How To Hotspot Your Logistics

Workforce development

Any region that is a hotspot for logistics shares the common feature of having a skilled workforce. Consequently, with a significant portion of the US population approaching retirement, companies are increasingly targeting regions with a young and skilled pool of employees for expansion.

Taking the example of Southern Arizona, officials collaborated with the University of Arizona and Pima Community College to impart valuable business skill sets to students numbering in thousands. This makes promoting the area to companies easy for officials who are responsible for its economic development. A skilled workforce would be ready to work for the companies that would want to expand there.

Location

Any region that has access to the larger markets of the country immediately becomes an attractive location for logistics. Such is the case with Tuscon. Companies prefer establishing their distribution centers at such locations because they can conserve their resources to reach their customers. Logistics hotspots need to be near big metropolitan areas to appeal to large distribution chains and suppliers.

Arizona’s political, social, and business ties with Mexico, grant the region a sizeable advantage in terms of the access it permits to the Mexican market. This results in the creation of new business opportunities and an expanded reach for supply chain centers. This in turn promotes trade between Mexico and the US, and balances export and import levels.

Infrastructure

A functional and well-maintained infrastructure is necessary for any transportation and logistics company to be effective. One of the crucial factors responsible for transforming Southern Arizona into a hotspot for logistics was the Port of Tuscon, an intermodal rail system. It offers a range of transportation options via rail within the Southwest.

Tuscon’s proximity to deep water ports on the West Coast is attractive for companies that conduct business at a global level.

Highlighting assets

South Arizona has also successfully been able to focus on and develop the assets that enable logistics functionality. Infrastructure, workforce, and location are all strengths that the region has successfully leveraged.

Learn More about our Logistics Solutions

For more in-depth information, read 6 Tips To Save Costs When Importing or Exporting Goods

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Methods of conducting business have evolved rapidly within the last two decades. Advancements in technology have revolutionized all the various aspects of conducting business. Production and subsequent transportation, the key aspects of any business, have also undergone a revolution in this regard. Integrating new technologies boosts production volume and efficiency, ultimately improving the bottom line. The rapid increase in connectivity has enabled innumerable businesses to improve their process flows greatly.

Control Of The Supply Chain Through IoT

Businesses in logistics seek full supply chain visibility to make informed decisions and benefit all stakeholders. This further enables saving inefficiency costs and improving your profit margins.

Full Supply Chain Visibility

How is this possible with the Internet of Things IoT? There is a wealth of data that can be assimilated and analyzed within the existing supply chain of your business. This ranges from all your carriers, employees, vendors, and customers. Whether acquiring the data is done manually or through integrating systems, the effort is worth the insights that can be acquired.

Increase Supply Chain Efficiency

Fleet management in Logistics and Transportation is essential for the efficient maintenance of the vehicles in your fleet, along with their scheduling, daily usage, and the planning of routes. These are areas where processes can be optimized to lower costs and subsequently raise profit margins. One of the best ways to increase efficiency and effectiveness is to reduce the downtime of your fleet.

When used properly, a route planner can significantly enhance the visibility of your operations. It allows you to plan routes, providing you with known distances and durations. Consequently, both drivers and customers can stay informed about the timing of visits.

Checking in manually, paper copies, and receipts are all things of the past now. Hand-held scanners, mobile computers, and RFID-enabled systems allow for deliveries to be speeded up and generate data in real-time. This enables greater visibility for all the activity that is taking place at your ground operations. Using the leverage of this technology and maintaining the connectivity between you, your drivers and your fleet greatly enhances the efficiency of your operations.

Utilizing new technologies and integrating them with your existing business models is crucial for cashing in on the efficiencies they enable for your business. Advancements in connectivity allow your business to expand its reach into other geographical areas easily. The new technologies are the road to the future of conducting business. The Internet of Things (IoT) has greatly enhanced business connectivity and integration. As technology evolves rapidly, IoT represents just the start of a transformative business revolution.

Explore further by checking out these related articles

• 4 Core Risks in the Global Supply Chain
• Transport Management Systems For Domestic and Global Transportation

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However, the concerns of international trade and logistics are extremely varied, to say the least. To handle international logistics, ERP systems must efficiently manage complex requirements, particularly in global supply chain control and execution. This compromise would ironically be the result of expanding the functionality of ERP systems.

ERP systems: advantages and disadvantages

To keep pace with dedicated SCM software, ERP systems are beset with the twin problems of mobility and integration. ERP systems are great for systemizing the workflow within the warehouses of a single company, but cannot keep up once there is a shift of focus towards other processes that are of greater complexity. One of the processes is the involvement of third or fourth parties across different sites and systems, managing multiple vendors, and increased variability of material handling systems.

The integration of systems for facilitating the exchange of data and collaboration between partners of different enterprises is a necessity in global supply chain management. The problem is that most ERP systems simply do not have all the necessary data to be considered an effective solution. As a result, ERP providers have created more modules to accommodate such requirements. However, for most companies, the ERP system is the core on which the IT infrastructure of the company is based. As a result, it contains sensitive information, which is the reason why businesses wouldn’t want to permit “outsider” access.

The processes of global trade present another dilemma for ERP systems. We can use the example of customs processes to illustrate this. The regulatory requirements for customs change constantly. ERP systems cannot handle constant updating which is a necessity to conform with compliance policies.

SCM software

Dedicated SCM software programs are not designed to be as all-inclusive as ERP software. Their solution focuses on key areas like customs clearance, transport management, and collaborative supply chains. This is the advantage that dedicated solutions like these present. However, there needs to be a platform that facilitates all parts of the supply chain. Solutions dedicated to individual areas become restrictive by the very fact of their specialization, and hence cannot deliver an integrative benefit.

Conclusion

Therefore, deciding between an ERP system or SCM system, or both, depends on a company’s individual requirements and operational processes. A company needs to be especially careful if its requirements are highly complex, and should ideally adopt a solution that incorporates both systems.

Learn More About Our Logistics Services

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The supply chain, often overlooked, is highly vulnerable to economic upheaval and shifting customer demands. As a crucial component of a company’s operation, managers need to identify, quantify, and mitigate risks. A recent Chartered Institute of Procurement and Supply (CIPS) study reveals that global supply chain risk is at its highest since 2013, driven by economic and environmental instability worldwide.

The Main Key Factors Affecting The Global Supply Chain:

Economic Risks

These vulnerabilities reflect a diverse set of global challenges facing companies. The effects of economic slowdown and political upheaval are particularly impactful on the supply chain. As currency fluctuations, instability in demand and prices, changing labor costs, and inflationary pressures make it impossible for firms to accurately plan their investment in foreign markets.

For many companies, this means they must instead opt for a shorter and simpler supply chain. If outside procurement is necessary, companies must keep close communications with suppliers to ensure they are flexible enough to monitor, and quickly react to changes in the market.

Environmental Risk

These risks can be both internal and external. Natural disasters and other extreme weather conditions comprise the bulk of external environmental risks companies will face. Earthquakes, floods, storms, and tornadoes can close airports, docks, and roads, delaying shipments and disrupting travel and communication.

Internal risks can arise from improper health and safety and goods management procedures. These can cause fires, spills, chemical leaks, and other environmental hazards that result in the shutdown of storage or shipping facilities.

While weather conditions are unpredictable, you can develop reaction plans and guidelines for suppliers to handle disruptions. Ensure strong communication systems are in place and that contracts address potential delays from environmental factors.

Political Risk

Terrorism, government policy changes, systematic corruption, and energy crises. These are just some of the geopolitical issues facing firms that operate in the international marketplace. If a country pulls out of a mutually beneficial trade deal or starts to pursue protectionist policies it can severely affect the terms of your international dealings. While the possibility of expensive shipments being commandeered, or a delivery channel being closed due to security threats is also a very real possibility.

Companies must be aware of the political trends in the country they are receiving supply from. Technology can be used to develop an overall picture of possible risks, while certain insurance policies will cover companies against the threat of embargoes or canceled licenses. It may be necessary to establish an on-ground presence through an IOR or EOR to ensure the delivery of goods at agreed prices.

Supplier Risk

Outsourcing crucial operations exposes you to risks like inaccurate shipments, poor communication, and potential supplier insolvency. Conduct thorough screening and regular assessments of suppliers to ensure compliance and reliable delivery. Collaborate to identify and mitigate potential risks.

Explore further by checking out these related articles

• How the Internet Of Things IOT can Increase transportation productivity
• Transport Management Systems for Domestic and Global Transportation
• Risks of International Expansion
• International Shipping Tips

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