LOGISTICS
CONSULTANT

I, BASIC LOGISTICS PROCESS

Any basic logistics process comes from the actual needs of raw materials, production, consumption, supply chain management, transportation, and job processing. In this article, I will only ask for permission to analyze in terms of transactions that often occur in the business so that readers can easily imagine.

A need arises

This is the origin of the exchange of goods at businesses, this need exists in many forms:

Commodity demand
Demand for international goods trading and processing services
Consulting, service support

The basic logistics process is being applied by businesses in many ways

Basic logistics process

When you clearly define your needs, you will find out the source of the goods, meeting the standards of your business summarized in the following 07 steps.

S1: Offer – ask for a price

If there is a need to buy goods, they will search for suppliers on channels:. 2 Popular forms

(1) From sourcing goods: google, taobao, alibaba, familiar partners..

(2) Post buying and selling needs for customers to find by themselves

Form of transaction: Letter of offer, asking price, quotation of goods through transactional mail

When you find many suppliers of the same product you need, you will have a step to negotiate an agreement. The purpose is to make the best choice in terms of quality, suppliers, price, reputation and after-sales modes. Of course, the factor that cannot be burned is the delivery time, the exact amount of the salary.

 

S2: Negotiation, agreement

Discussing the quality and quantity of goods and services provided

Price, delivery conditions

Packaging specifications, product packaging

Prices, promotions, warranties, complaints if any

Payment conditions in the sale and purchase agreement…

In this step, the negotiator must be knowledgeable about the goods, have a firm grasp of the profession, and be fluent in foreign languages. Usually negotiate on the form: meeting, phone, mail transaction. If you do not know, how to write transactional emails in import and export, please refer to the article here

Negotiation is an important step in signing import-export transactions

 

S3: Forming a contract to buy and sell goods – Purchase decision – Payment method

Contract purchase and sale (Responsibility of each buyer - seller)

Payment terms according to which method and how much in advance depending on reliability, first time transaction or regular customer

Delivery date and time, shipping goods under any Incoterm

Thanks to consulting on regional trade practices, dispute resolution, after-sales service

 

S4: Making a foreign trade contract can be a purchase contract or a sales contract

In the import-export process Making a foreign trade contract is the fourth step when the two parties have agreed to the terms of the trade agreement.

The contract can be drafted by the buyer or the seller on the contract, clearly showing the content to buy, sell and exchange goods, the responsibilities of the two parties, and how to resolve the dispute when there is a dispute.

 

S5: Hire international freight

Hiring a truck driver can hire the entire import-export service, or hire a part of the service steps that need to be done:

Operations include: – Chartering, making bill of lading

Carry out procedures for inspection and fumigation of goods... if necessary (apply for a certificate of fumigation, C/0 ...)

Buy cargo insurance (Certificate of cargo insurance)

Packing goods, doing customs clearance procedures (goods declaration, export tax, post-clearance processing)

Transporting goods after customs clearance (car rental, transporting goods after customs clearance to designated warehouses)

Get the bill of lading, book the ship

International transportation is an indispensable process in import and export

 

S6: Delivery of goods at the destination

Customs clearance of imported goods

Carry out specialized inspection procedures according to regulations in the importing country

Multiply goods delivered at destination

Related documents: D/o, Import declaration, specialized inspection documents, A/N, authorization of goods....

 

S7: Importing and consuming

Import goods warehouse

Summary of product costs

Bring the goods to the gathering place.

Complete the payment as agreed in the contract.

The above is the basic logistics process applied to import and export goods in Vietnam. Most current businesses will hire services at the fifth step: Transportation and customs clearance because of lack of professional knowledge, insufficient equipment and human resources. Shippers should note that when hiring a service, they must clearly understand the stages in transportation to know about the quality of the service they are using, to avoid the situation that the price in the contract and the arising fee are not the same.